Bank of Finland lifts 2021 economic growth forecast

2021-03-19 22:06:31 GMT2021-03-20 06:06:31(Beijing Time) Xinhua English

HELSINKI, March 19 (Xinhua) -- The Bank of Finland (central bank) on Friday raised slightly its estimate of the gross domestic product (GDP) growth in 2021 but warned that the momentum will slow down in 2023.

The Bank of Finland said in its press release that the economic growth in Finland in 2021 will be 2.6 percent, up from the 2.2 percent it had predicted in December.

The central bank lifted the forecast despite the worsening of the pandemic during the early months this year, saying the recovery has been boosted by a stronger-than-expected development in the second half of 2020.

The forecast is based on the assumption that as vaccination coverage increases, society can reopen and economic growth will gather pace.

The Finnish economy would continue to recover in 2022, with GDP growth reaching 2.7 percent. However, the pace will slow to 1.2 percent in 2023 due to the decline in the working-age population and weak productivity increase. Enditem