HELSINKI: The Aktia bank’s latest outlook shows that the Gross Domestic Product (GDP) is forecast to remain unchanged this year.
The GDP is expected to grow by one percentage point next year due to improvement in export conditions and stabilisation of domestic demand. Aktia cites the weakening exchange of the euro, drop in oil price and financial condition relief in the euro area as the main factors that support the growth area.
The growth of export, however, is overshadowed by the deep recession of the Russian economy. According to Aktia, employment conditions will further deteriorate this year with unemployment forecast to rise to 9.4 per cent. Unemployment is forecast to remain high for a long time.
Aktia predicts growth in the euro area to reach 1.5 per cent this year. “The Euribor rates will remain close to the current level the whole of this year and next year,” said Anssi Rantala, the chief economist of Aktia.
