Finland Times

Meanwhile, SvenskaHandelsbankenbank on Tuesday also published its economic outlook forecasting that the National Domestic Product will grow by one per cent this year as well as the next.

In 2018, Handelsbanken expects a decrease of growth to 0.8 per cent.

Economic recovery, according to Ilmarinen, will be especially spurred by strong growth in construction investments, which began last year, and private consumption.

Export too is expected to take a moderate upturn. According to Ilmarinen, currently the growth potential for enterprises seems better than in many years in the recent past. 

Workforce expenses are seen to go in a steep decline in next year and social insurance payments are to witness a moderate decrease until 2020.

“General economic recovery combined with a historically low level of interest is now encouraging investment,” said Jaakko Kiander who is in charge of Finance and Governance at Ilmarinen.

According to Kiander’s estimation, the government’s goal of 72 per cent employment rate is not to be expected for the time being.

Handelsbanken is optimistic about the export prospects for the rest of the year, since industrial production has started to grow by large in the second quarter and has kept on to the third quarter.

According to the bank, the country’s economic growth is mostly based on private consumption and construction investments, which are powered by increased loan taking, thus underlying the fragile recovery.