Bank of Finland Lifts Growth Forecasts

Finland's central bank lifted its economic growth forecasts on Tuesday, citing recovering exports, but said that reforms were needed to boost growth and strengthen public finances.

According to Reuters the bank now expects the gross domestic product to rise 2.1 percent this year, up from a previous forecast of 1.6 percent in March. Last year, GDP grew 1.4 percent.

The bank also forecast growth of 1.7 percent for 2018 and 1.4 percent for 2019, compared with previous estimates of 1.5 percent and 1.3 percent.

"Despite the firming up of exports, economic growth in the forecast period will mainly depend on private consumption and investment. Private consumption growth will be bolstered by an improvement in the employment situation and rising purchasing power," the bank said in a statement earlier today.

The Finnish economy is recovering from decade-long stagnation following a string of problems, including rigid labor markets and recession in neighboring Russia.