HELSINKI: Finland's economy will contract by 1.2 percent this year, far lower than previous forecasts, the government announced in an economic report Thursday.
The outlook for the Nordic country -- which is part of the euro area -- was "weak" despite "recent encouraging news from the eurozone", according to the report.
In September, the government forecast a 0.5 percent drop in gross domestic product ( GDP) for 2013, expecting a slight improvement on the 0.8 percent drop the previous year.
The ruling coalition has proposed several measures to tackle the downturn -- including back-to work schemes, lower local government spending and raising the retirement age -- but with limited success, due largely to political disagreements.
Finland's economy is heavily dependent on exports and the slowdown in the US and Europe has left the balance of payments in a deficit of 1.8 billion euros ($2.5 billion) between January and October this year and 2013 is expected to be the third consecutive year of deficits.
Nonetheless, Finland is one of the only eurozone countries to boast the top "AAA" rating with all three major credit rating agencies Standard and Poor's, Moody's and Fitch.
indiatimes.com
The outlook for the Nordic country -- which is part of the euro area -- was "weak" despite "recent encouraging news from the eurozone", according to the report.
In September, the government forecast a 0.5 percent drop in gross domestic product ( GDP) for 2013, expecting a slight improvement on the 0.8 percent drop the previous year.
The ruling coalition has proposed several measures to tackle the downturn -- including back-to work schemes, lower local government spending and raising the retirement age -- but with limited success, due largely to political disagreements.
Finland's economy is heavily dependent on exports and the slowdown in the US and Europe has left the balance of payments in a deficit of 1.8 billion euros ($2.5 billion) between January and October this year and 2013 is expected to be the third consecutive year of deficits.
Nonetheless, Finland is one of the only eurozone countries to boast the top "AAA" rating with all three major credit rating agencies Standard and Poor's, Moody's and Fitch.
indiatimes.com
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