HELSINKI, Dec. 17 (Xinhua) -- The Bank of Finland has reduced its predicted economic growth in Finland next year to 0.8 percent. In its previous estimate in September, it had predicted a 1.1 percent growth in 2025.

In its forecast for years until 2027, published on Tuesday, the Bank of Finland noted that the recovery from recession would begin slowly, as it is shadowed by uncertainty about world trade. Juuso Vanhala, head of forecasting at the bank, said in a release that private consumption is affected by low consumer confidence, widening unemployment, and tighter fiscal policies.

The bank predicted that the Finnish economy will contract by 0.5 percent in 2024. In 2026, a 1.8 percent growth is expected to be achieved. From 2027, growth is expected to decline to 1.3 percent, which the bank estimated to match the long-term growth potential.

Inflation is projected to remain below 2 percent throughout the forecast period.

In the export sector, the anticipated tightening of trade policy by the United States threatens Finnish export growth, Vanhala said. Exports will gradually pick up from 2025, with the economies in the key export markets improving, he added.

Finnish public debt is still on an "unsustainable path," the bank said. Enditem

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