HELSINKI - Finland's finance ministry lowered on Monday its forecasts for economic growth for 2018-2020, citing declining exports and investments amid a global trade war. The ministry expects Finnish gross domestic product to grow 2.5 percent this year, 1.5 percent in 2019 and 1.3 percent in 2020. In September, the ministry had forecast growth of 3.0 percent in 2018, 1.7 percent in 2019 and 1.6 percent in 2020.
"The growth in Finnish exports will slow and the willingness to invest will decline as growth in the global economy slackens and further barriers to international trade are erected," the ministry said in a statement. "We are seeing a loss of momentum in the economic upswing and growth is returning closer to a normal level."
In the medium term, growth would be below 1 percent, it added, and said that public finances were set to weaken in the future due to a rapidly ageing population.
In the decade following the global financial crisis, Finland's economy struggled due to a string of external and internal problems, including a decline of Nokia's NOKIA.HE former mobile phone business and recession in neighbouring Russia.
While the economy rebounded, the country's employment rate is lagging Nordic peers at 72 percent.
The ministry called for reforms to boost employment. ($1 = 0.8845 euros)
(Reporting by Jussi Rosendahl; editing by David Stamp) ((jussi.rosendahl@thomsonreuters.com; +358 9 2516 6113))
