The ministry of finance forecasts that the Finnish economy will grow by 2.5 percent in 2018 and 1.5 in 2019. The state council
the finance minister of the country Monday according to the forecast, the Finnish economy will grow by 2.5% in 2018. Growth will slow from the previous year, but is still fast.
–world trade slows down trade barriers to increase, thereby slowing down growth in exports and also investment expectations. In 2019 the economic growth is expected to slow to 1.5%. The Finnish economy will grow 1.3 percent in 2020 and 1.1 percent in 2021. Medium term growth will remain less than one percent, which is the potential output growth slower.
according to the ministry of the good economic situation and increasing expenditure suppressants actions to strengthen the fiscal balance. Also, the ratio of public debt to gross domestic product (GDP) will decline in the coming years. Public finances, however, started to gradually weaken early 2020s, when the economic growth slows down and the adjustment operation ends.
the Economic peak of the business cycle has slowed down and growth is returning to more normal pace. To withstand the growing cost pressures on public finances needs to be more employment and growth. The economic resources you need to get more efficient use, noted the head of department, director general Mikko Spolander.
finance ministry predicts economic growth will fade. KARI PEKONEN”the employment rate rises to 73.3 per cent”
ministry of Finance forecasts economic growth will slow in the next few years.
–Finnish export growth will slow down and the willingness to invest will decline, as global economic growth slows and the international trade barriers are on the increase. Investment growth, slowing housing investment also decreased, while their levels will return to closer to normal. Large investment projects, however, are replacing the world economy deteriorating outlook downgraded by investment in the forecast period towards the end.
despite the Economic slowdown, real wages moderate development maintain labour demand. Unemployment and disguised unemployment of quite a large number of as well as labour supply-enhancing measures due to labour supply is not the whole economy level still limited to employment and economic growth. Employment rate rises to 73.3% and the unemployment rate will decline to 6.6% by the year 2021, the ministry predicts.
prospects for the Euro area weakened
the money according to the ministry the world economy to a higher growth phase is now over, and growth will slow in the next few years.
–the Normal cycle along with global economic growth slowing in key economies, trade between the conflict of partial realization. World trade growth slows down trade barriers as a result of fast 3½ per cent of the forecast period.
–prospects for the Euro area have deteriorated during the current year. In particular, industrial confidence economic development has decreased. The us economy is in a strong tune, but economic growth will slow over the forecast period closer to potential growth.
Public finances weaken
the finance ministry said in a statement that the good economic situation and increasing expenditure suppressants actions to strengthen public finances.
a few years ago, fair in the deficit of public finances is a decade at the turn of the balance. Also, the public debt ratio to GDP will decline in the coming years.
according to the ministry of public finances, however, started to gradually weaken early 2020s, ”when economic growth slows down and the past election season to make annual adjustment end”.
–Public economy weakened the aging population, which will increase the pension-, health – and care spending.
–When age-related public expenditure growth and economic growth remains subdued, public expenditure and revenue between the long-term imbalance, i.e. the sustainability gap, the dimensions of which category is almost 4% of GDP. Sustainability gap assessment have increased, inter alia, of Statistics published by the new previously extended population forecast, as well as that contained in the earlier lower assumptions of birth rates and immigration, the ministry stated.
