The European Commission's latest economic forecast for Finland, published on Thursday, notes that the country's economic growth continues to be fuelled by private consumption and investment, supported by high confidence levels, rising employment and low interest rates.
Although the Commission sees Finland's economy growing this year and next at a faster pace than the EU average, it has trimmed back earlier expectations. This latest forecast is for 2.5 percent growth in the Finnish economy in 2018, followed by 2.3 percent in 2019. The previous forecast was for be 2.7 and 2.4 percent respectively.
Thursday's report says that with the improved balance in public finances and faster GDP growth, the decline in Finland’s debt-to-GDP ratio has accelerated, going from 61.4 percent last year to a projected 59.6 percent in 2019.
If the forecast proves accurate, the decline in the debt to GDP ratio would bring Finland back in line with the EU's Stability and Growth Pact. Finland's public debt crossed the pact's 60 percent upper limit in 2014, but did not incur any sanctions for doing so.