Finnish economy to grow 0.5% in 2013

Finnish economy to grow 0.5% in 2013Finnish officials have forecast that the national economy will see minimal growth in the coming year.

According to the latest report from the country’s Finance Ministry, Finland’s GDP is set to expand by just 0.5 percent in 2013 after shrinking by 0.1 percent in 2012. Experts said that the sluggish outlook is the result of a continued lack of demand for Finnish exports from crisis-hit economies elsewhere in the region.

Conversely, unemployment is slated to shrink to 8.1 percent in 2013.

The ministry’s official statement read, “The prospects for consumption growth have deteriorated. In 2013 private consumption growth will reach just 0.6 percent. At the same time household debt will continue to outpace disposable income.”

However, officials said that the Nordic nation will see a rebound in 2014, with GDP growth forecast at 1.7 percent over the 12-month period, although it will still fall short of levels seen in 2008 prior to the global financial collapse.

The ministry explained, “GDP will not recover to the 2008 level even by year-end 2014. Industry in particular is undergoing restructuring, which is reflected in growth rates.”

The report also said that Finland is expected to continue accruing debt through 2014, and noted that the country will “remain firmly in deficit” through next year.