Economic growth in Finland used to be the weakest among the eurozone countries but in the first half of 2017, it demonstrates the strong and sustainable growth.
Finland’s economy climbed to its strongest rate since 2011 – the first half of 2017 showed that this Scandinavian country left the list of the weakest economies in the eurozone. Growth in the first quarter was revised upward, from 2.7 per cent to 3 per cent, say the financial experts.
Since 2007, Finland has been one of the worst performing economies in the single currency area. The country experienced several negative economic events like the decline of flagship industries such as paper production and the downfall of Nokia. All this affected the economy and reduced its ability to show the growth until now.
The growth was driven by a particularly strong increase in capital investment, which increased 11 per cent compared to a year ago. On a quarter on quarter basis, the Finland’s economy expanded by 0.4 per cent, down from 1.2 per cent in the first quarter after a particularly weak June.
Moreover, inflation will be sluggish throughout the forecast horizon, the consumer price increases in 2016–2018 will remain below the euro area inflation rate, having been faster almost without a break since 2008.