Finland Times

The economy is, however, forecast to grow by 1.2 percent in 2016 and 2017.

According to the ministry, the public debt is surpassing the 60 percent threshold and the debt ratio is not leveling off for the forecast period.

The value added of domestic industries is forecast to shrink by two percent this year, but it is expected to grow by 2 percent in 2016 and by 3 percent in 2017.

The domestic risks, according to the ministry, continue to be associated with the development of real economy and the labour markets.

“It seems that in the coming years Finland's economy will remain behind competing countries. The favourable development of the real economy is a necessary condition of sustainable improvement of the state public finances. It should be emphasised that economic development similar to the once forecast does not in itself improve significantly that state of public finances in Finland,” said the statement from the Ministry.