OECD forecasts healthy growth for the Finnish economy

Finland’s GDP will grow at an annual rate of 3% in 2011 and 2012, according OECD’s newly published Economic Outlook.

Finland’s economy has rebounded strongly from the recession, with exports driving growth and unemployment starting to recede, according to the OECD. The economic outlook for Finland is very positive, with the OECD revising its earlier growth estimates markedly upwards. OECD now forecasts 2.7% GDP growth for Finland during 2010, followed by 3% growth both in 2011 and 2012.

The Finnish economy will continue to benefit from firm world trade growth. Finnish exports are expected to grow by 9% in 2011 and 4.6% in 2012. Renewed confidence and lower unemployment will support domestic demand, leading to robust investment and output growth in the years ahead, according to the OECD. Remaining slack will hold inflation down. The resumption of growth and fiscal consolidation will improve public finances markedly. The fiscal deficit is expected to exceed 3% of GDP this year, but to drop to 1.7% in 2011 and 0.7% in 2012.