World Economy

Finland Growth Slowest in EU

Finland Growth Slowest in EUFinland Growth Slowest in EU

The Finnish economic outlook has weakened once again. GDP growth of 0.2% in Q2 was the slowest among eurozone economies, reported. Exports are taking longer than expected to resume growth and rising unemployment and public expenditure cuts limit domestic demand. Forecast has been revised downward and the government expects the GDP to be flat in 2015. Fitch has Finland up for review on September 18. The new budget and reform plans may have bought Finland time but Fitch is likely to strip Finland of its AAA rating. Despite a potential downgrade, it is expected that steady performance in Finnish government bonds are going forward, as the RFGB market continues to be one of the biggest beneficiaries of the ECB QE program.