December 17, 2019 / 8:05 AM / a month ago

Finnish central bank cuts growth forecasts

HELSINKI (Reuters) - Finland’s central bank cut its growth forecast to 1.3 % for this year on Tuesday, from a previous estimate of 1.6 % in July, blaming sluggishness in the global economy.

It also forecast gross domestic product to grow 0.9% for 2020 and 1.1% for 2021, compared with previous estimates of 1.5% and 1.3% respectively.

Finland’s economy grew at 1.7% in 2018, according to Statistics Finland.

“Finland’s economic boom is over and growth is temporarily losing momentum amid weaker global economic activity. However, there is still potential for continued economic growth,” the bank said in a statement.

Bank of Finland Governor Olli Rehn said the Finnish economy was still going through a period of transition in which it has to adjust to two large structural realignments.

“One of these concerns the ageing population. The other comprises the shocks to the economy suffered since 2007, from which we have not yet fully recovered,” he said at a news conference.

Reporting by Anne Kauranen, Editing by Andrew Heavens and Philippa Fletcher

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