Labour Think Tank Forecasts Rising Economy

In a forecast issued on Thursday, PT predicts that the Finnish economy will grow by three percent this year. In spite of the growth, output will remain well below the 2008 level, when output was five percent higher. The institute expects slow growth to continue next year as well, with an estimate of 3.5 percent.

Factors behind the improvement include improved international prospects, and especially growing exports, which PT expects to rise by 7.8 percent this year.

One of the factors boosting the economy is increasing investments in housing.

Joblessness Still Rising

PT expects the unemployment rate to rise to 9.1 percent this year, which would mean 20,000 new unemployed individuals.

The institute urges continued stimulus measures this year, especially to promote employment.

Last year total output in Finland declined by a record 7.8 percent.

Also on Thursday, Statistics Finland reported that the nation's output slipped by two-tenths of a percent in January compared with a year earlier. It says that December's output was down by 3.5 percent, which was not as bad as previously thought.