Bank of Finland sees broad-based growth

The euro area is now witnessing a broad-based economic growth as confidence in the economy has increased and investment levels are on the rise, according to the Bank of Finland.

The economic expansion is projected to be solid in the coming years across a range of economic sectors and countries. Yet, this upturn in growth has not led to a satisfactory rise in the rate of inflation.

The euro area’s accommodative monetary policy has also bolstered the recovery of the Finnish economy. Lending rates remain low, and the euro area has seen continued economic growth, which is important for Finland’s export sector.

“Finland’s economic recovery is now more broad-based and robust than before owing to the upturn in exports and corporate investment,” Bank of Finland Governor Erkki Liikanen told a press briefing organised to launch the latest issue of the bank’s journal Euro & Talous on Thursday. Furthermore, Finnish exports are receiving support both from the global economic outlook and the Competitiveness Pact which came into force at the turn of the year

It is important that the measures designed to strengthen Finland’s economy continue to be implemented. “The decline in cost-competitiveness has been turned around and the situation improved. It is essential to sustain this progress and recover the losses of the past decade,” said Liikanen.

Most urgent are measures to foster growth in employment and productivity as well as strengthen the public finances and improve their long-term outlook.

At the beginning of 2017, rising energy costs and food prices were the primary contributors to inflationary pressure. Since then, however, their impact has lessened.