The Ministry of Finance’s economic survey forecasts 2.4 per cent growth in the Finnish economy this year.

Renewed brisk growth in industry is also driving a rapid improvement in productivity, said a government press release.

A strengthening upswing at the start of the year substantially improves the growth forecast for the year as a whole.

Economic growth rests on a solid foundation, as growth is quickening in all demand items and all major sectors including manufacturing.

Gross Domestic Product (GDP) growth will slow to around 1.5 per cent in 2018 and 2019, which is faster than the long-term growth potential.

Private consumption will continue increasing this year, boosted by rising employment. The focus of private investment is shifting from construction to productive investment in manufacturing.

Conditions are improving for growth in exports, as global export demand is rising and businesses are becoming more cost-competitive. After years of negative contribution, foreign trade will begin boosting GDP growth.

Growth in private consumption will slow down next year as rising inflation erodes employees’ purchasing power. Growth in private investment will also decline as growth in construction investment levels off. Growth in exports will slow marginally as it returns a little more slowly than growth in export demand.

The rate of growth in private consumption will continue to fall in 2019 due to slowing of real growth in disposable income. Growth in private investment is expected to accelerate again due to major investment projects planned for Finland. Export growth will keep pace with growth in export markets.

The current account will remain in deficit throughout the forecast period, notwithstanding the upturn in the balance of trade.

Growth in the global economy is gaining momentum, but some uncertainty remains concerning the solidity of growth prospects. Growth in global trade last year was the slowest in several years, although there was a clear recovery towards the end of the year. For Finland, the upturn in global trade will give rise to somewhat higher demand than in recent years.

Though economic growth is strengthening in industrialised countries, the growth of nearly 4 per cent in the global economy is still maintained by emerging economies.

“The economy is growing and demand is strong. This would be a good time to restructure the economy and strengthen conditions for future growth", explained Director General Mikko Spolander.