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Finland is latest in euro zone to slash growth forecasts
December 13, 2012 / 9:01 AM / 5 years ago

Finland is latest in euro zone to slash growth forecasts

HELSINKI, Dec 13 (Reuters) - The Bank of Finland slashed its growth forecast for the country, showing even one of the healthiest economies in Europe was suffering from sluggish growth.

In a report on Thursday, Bank of Finland Governor Erkki Liikanen called on the government to do more to curb the country’s debt ratio from creeping higher amid a weakening economy.

The central bank forecast gross domestic product (GDP) to grow 0.4 percent in 2013, down from the 1.2 percent growth it predicted in June. It also cut its growth forecast for the current year to 0.3 percent from a previous 1.5 percent.

“The economic outlook has clearly deteriorated in recent months,” Liikanen, who is also ECB Governing Council member, said.

“With early measures, the public finances can still be strengthened in a controlled way. If the measures are postponed too far, the pressure for sudden and hasty policy action will grow considerably,” he said. (Reporting by Helsinki Newsroom. Editing by Jeremy Gaunt.)

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