HELSINKI, April 25 (Xinhua) -- The Finnish Ministry of Finance downgraded its growth estimate for the country on Thursday, forecasting that the Finnish economy will not grow this year.
In December, it predicted a 0.7 percent GDP increase.
"Finland's economy will begin to improve this year, though it will not yet show growth on an annual basis," the ministry said. It predicts 1.6 percent growth in 2025 and 1.5 percent in 2026.
The ministry noted that "the recession has been longer and deeper than previously estimated. The economic recovery measures introduced by the Finnish government last week will also weaken economic growth by about 0.5 percent in 2025 and 2026, it said.
The government's key measures include raising the general value-added tax (VAT) from 24 percent to 25.5 percent and implementing over 1 billion euros (1.07 billion U.S. dollars) in spending cuts.
The ministry noted that the recent measures will slow the growth of the debt-GDP ratio, and it is planning legislation so that the increased VAT could take effect in September.
