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Finance Ministry Raises Growth Prediction

The Finance Ministry is now predicting that Finland will experience 3.5 percent growth this year. Last December the Ministry’s prediction was that growth would be just 2.9 percent this year.

kulunut kolikkokukkaro ja 20 centin kolikoita
Image: YLE / Markku Karvonen

Next year’s growth figure is expected to be 2.5 percent. Unemployment is forecast to fall to 7.6 percent this year and 7.2 percent in 2012.

On Friday the government confirmed the state spending limits until 2015, which will cover the period of the next government.

Government debt is expected to grow by eight billion euros a year unless action is taken to reduce the budget deficit. If the debt continues to grow at that debt it will stand at 117 billion euros in four years time, equivalent to around half the country’s Gross Domestic Product (GDP).

Finland’s debt situation is better than that of most European Union countries. Before the financial crisis Finland’s public debt was just 30 percent of GDP.

Sources: YLE