HELSINKI, March 11 (Xinhua) -- The Bank of Finland warned on Tuesday that aggressive U.S. trade policies pose a risk to economic growth in Finland and the European Union (EU), as its extensive tariffs could weigh on exports and increase economic uncertainty.

The bank said U.S. tariffs targeting the EU and China could reduce global gross domestic product (GDP) by over 0.5 percent in 2025 and 2026, with the eurozone facing a slightly larger impact.

The U.S. has imposed significant trade restrictions on its trading partners, said the bank, noting that the uncertainty weighs on eurozone investment and exports.

Despite maintaining its December growth forecast for Finland, the bank said risks to the outlook had increased. It projected GDP growth of 0.8 percent in 2025, rising to 1.8 percent in 2026 before slowing to 1.3 percent in 2027.

"If implemented, the extensive US tariffs on imports from EU countries would make it difficult for Finland to export goods, as the US is an important export market for Finland. The increase in uncertainty can in itself curb private consumption, investment and the growth of Finland's export markets," said Olli Rehn, Bank of Finland governor, at a press conference. Enditem

Related

Go to Forum >>0 Comment(s)