World Economy

Finnish Economy to Grow Faster Than Forecast

Finnish Economy to Grow Faster Than ForecastFinnish Economy to Grow Faster Than Forecast

Mika Lintila, the newly-appointed minister of economic affairs, is confident that the national economy will grow in the next two years at a rate exceeding the latest growth forecast of the ministry of finance.

The ministry of finance announced late last week that it expects the gross domestic product to increase by 0.9% in 2017 and by 1% in 2018, after growing by 1.6% in 2016, reported.

“I don’t want to believe in the ministry of finance’s growth forecast for next year and 2018. I’m personally confident that economic growth will be stronger and that’s the goal we’ll work towards,” Lintila told a press conference after being officially appointed as successor of Olli Rehn on Thursday.

The ministry of finance estimated that economic growth will slow down next year as a result of a projected decline in domestic demand and the sluggish recovery of exports. The outlook for exports, it added, is nevertheless brighter than it has been for a number of years.

Lintila drew attention to the importance of export-oriented industries for the national economy and also identified efforts to spur job creation and investments as means to encourage economic growth in Finland.

“We must be able to generate growth in exports. We can’t forget our manufacturing industries, even though we’ve made new forays into, for example, the games industry. We’ll work to support all of these,” he promised.

Rehn left office to assume a vacant position on the board of the Bank of Finland in February.

Latest data from Statistics Finland show the people of that country are becoming more upbeat about the national economy. The index reached 19.5 in December, compared to the long-term average of 11.7.

The state agency said that its records show that the last time consumer confidence in the economy was this high was back in February 2011.

In December, 45% of respondents said they believed that the Finnish economy would improve during the next 12 months. The outlook has improved considerably since one year earlier, when just 24% of people interviewed were positive about economic development.

By contrast, confidence in personal finances rose more moderately. In December, 27% of consumers said they held a positive view of their personal finances, compared to 23% one year ago.

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