Sat, 16 Oct 2021

HELSINKI, Sept. 27 (Xinhua) -- Finland's Ministry of Finance on Monday upgraded its forecasts for the country's economic growth for 2021 from 2.6 percent published in June this year to 3.3 percent, and from 2.8 percent to 2.9 percent for 2022.

Finland's economy has been recovering speedily from the COVID-19 crisis since spring 2021, the country's Ministry of Finance said in a press release issued on Monday, adding that growth is projected to slow down in the coming years to 1.4 percent in 2023.

The quick recovery of the economy has been driven by three main factors: the rapid progress of vaccinations; the lifting of the COVID-19 restrictions; and the strong confidence of households and companies in the future, the ministry explained.

The global economic recovery, the stimulus measures introduced by the European Union (EU) and the demand for Finnish products in important trade areas are projected to further boost Finland's exports.

However, there are still reasons to worry, Mikko Spolander, director general at the Ministry of Finance, said at a press conference held here on Monday, arguing that the country's aging population is bound to pose problems in the long run.

"Long-term unemployment remains high," the Finnish national broadcaster Yle quoted Spolander as saying. "There are plenty of job vacancies and the shortage of skilled labor has once again been highlighted as a constraint on economic growth."

The main risks identified in the forecast are still linked to the COVID-19 pandemic and the related restrictions, the ministry said, adding that a failure to control the pandemic in the developing countries would weaken those economies, which in turn would significantly hamper global economic growth.

"A prolonged pandemic would reduce private consumption and especially demand for services, which would undermine economic recovery," the ministry said.

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