Economic outlook weakened since the spring

17.07.2001  |  Press release

On Tuesday 17 July, in the context of preparations for the budget proposal for the year 2002, the Ministry of Finance reviewed the prospects of the Finnish economy. The economic outlook has weakened further since the assessment this spring.

In the first half of this year, economic growth has fallen off considerably due to downturn in industrial production. Economic development in Finland's most significant export countries is proving weaker than estimated. Thus, the growth estimate for total output for this year has been adjusted down to 2.7 per cent from the previous estimate of 3.7 per cent, and the growth estimate for next year has also been lowered, from 3 per cent to 2.5 per cent.

The need to adjust the estimates is largely due to slower than expected growth of exports. Despite this, however, domestic demand and employment are developing roughly as predicted.

It is estimated that the unemployment rate will fall this year by one percentage point to 9.0 per cent (the previous estimate was 8.9 per cent). In 2002, the unemployment rate is now estimated at 8.8 per cent, compared to the previous estimate of 8.5 per cent.

The inflation rate is expected to slow down to below two per cent in 2002, as estimated this spring.

For further details, please contact:
Director General Martti Hetemäki, tel. +358 9 160 3177

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  17.07.2001

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