Bank of Finland forecasts slow growth in 2016

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Governor of the Finnish central Bank Erkki Liikanen in Luxembourg on September 11, 2015. (Theirry Monasse/AFP/Getty Images)
Governor of the Finnish central Bank Erkki Liikanen in Luxembourg on September 11, 2015. (Theirry Monasse/AFP/Getty Images)
The Bank of Finland forecasts slow growth next year, with no boost to exports on the horizon.

Economic growth will remain slower in Finland than elsewhere in the European Union, according to a fresh forecast by the Bank of Finland. The new figures suggest Finland’s economy will grow by around 0.7 percent next year, followed by growth of one percent in 2017.

The bank suggests that cost competitiveness is the key to reviving exports, but there won’t be enough global economic growth to provide a serious, sustained boost to Finland’s export industries.

Support for austerity, health reform

The bank did note that the ECB’s quantitative easing policy may be filtering through to Finland, with a small uptick in capital investment and more expected next year.

The bank also voiced support for the government’s planned austerity measures and reforms of social and healthcare services.

“In order to reverse the trend in the growth of public debt, spending cuts will need to be made on a broad front,” said the bank’s governor Erkki Liikanen in a statement. “If consolidation measures are not taken, those who are now young will need not only pay the bulk of the baby-boomers’ pensions and health and care services but also service the previous generations’ debts.”

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