Finland Times

 

European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici holds a press conference to announce the European Commission's Spring 2015 Economic Forecast, in Brussels, on May 5, 2015. Photo – AFP / Lehtikuva.

Finland is forecast to attain a modest economic growth of 0.3 per cent this year and 1.00 per cent in 2016, according to the European Commission Spring 2015 Economic Forecast.

 

In February, the EU Commission expected 0.8 per cent growth in GDP this year and 1.4 per cent in 2016.

 

Finland’s economic growth is the second lowest after that of Cyprus, according to the forecast.

 

The EU Commission upgraded its forecast in the Euro area. Europe’s economies are benefiting from many supporting factors at once. Oil prices remain relatively low, global growth is steady, the euro has continued to depreciate, and economic policies in the EU are supportive, said a release from the EC.

 

“The European economy is enjoying its brightest spring in several years, with the upturn supported by both external factors and policy measures that are beginning to bear fruit. But more needs to be done to ensure this recovery is more than a seasonal phenomenon. Delivering on investment and reforms and sticking to responsible fiscal policies are key to obtaining the lasting jobs and growth Europe needs,” said Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici said.

 

In its report, the EC said Finland’s three -year downturn is expected to come to an end this year with the economy forecast to start growing again gradually. 

 

Consumption and exports are expected to increase, helped by the euro’s depreciation and lower oil prices, but investment still looks sluggish. 

 

The budget deficit is forecast to remain above 3 per cent of GDP in 2015-16 and public debt is expected to exceed 60 per cent of GDP in 2015.