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Home BUSINESSGrowth stagnant, extensive measures required: central bank
Wed, 11 Jun, 2014 12:03:19 AM
FTimes- Xinhua Report, June 11


The latest economic outlook released by the Bank of Finland on Tuesday lowered the country's economic outlook this year to zero percent growth.    

According to the bank's new forecast, Finland's GDP will not grow in 2014, down from the previous forecast of 0.6 percent growth made in November 2013.
"Finland's GDP has now been declining for two successive years. A contraction in exports is linked to the ongoing restructuring of Finnish industry and the decline in cost-competitiveness," the central bank said in a press release.
Remarkable structural changes in industry have considerably weakened Finnish growth potential in the past few years, added the bank.
The bank pointed out that the long-term problems, which are structural in nature, cannot be resolved through general government deficits.
Concerning the problems in the Finnish economy, Erkki Liikanen, governor of the Bank of Finland, said: 'The agreements on structural reforms and on general government consolidation measures have been vitally important."
He emphasized that rebuilding of confidence requires more extensive measures in the future rather than those currently proposed, especially if uncertainty were about to arise regarding implementation of the decisions taken.
The bank expects the Finnish economy to grow 1.4 percent in 2015 and 1.5 percent in 2016.  
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