Finland May Lower 2009 Economic-Growth Forecast, Katainen Says
Finland may lower its economic-growth forecast for next year as the euro region as a whole is already in a recession, Finance Minister Jyrki Katainen said.
“It is possible that our growth rate will come down,” Katainen said in an interview today at a meeting of European finance ministers in Brussels. “There is a growing risk” that “the growth rate is going to be less than 0.5 percent” in 2009.
Finland will publish its next economic forecast in the middle of December, Katainen said. The European Commission last month forecast 2009 expansion of 1.3 percent for Finland, down from an estimated 2.4 percent this year.
The government in Helsinki has put forward economic incentives totaling 1 credit score.2 percent of gross domestic product, including tax cuts and increased spending. Across the European Union, policy makers are struggling to coordinate 200 billion euros ($254 billion) in stimulus measures announced by the EU last week.
“We have been in a good situation so far because public finances are in a good shape and our banking sector seems to be quite healthy,” Katainen said. Finland may implement additional and “temporary” stimulus measures, especially in construction, he said.