HELSINKI: Finland's Finance Ministry on Wednesday raised its gross domestic product forecast for 2016 but said growth was set to slow down in the following years due to a weak export outlook.
Growth is resuming to the troubled euro member economy after years of stagnation, but largely due to consumption and construction, the ministry noted.
It forecast the GDP to grow by 1.4 percent this year, 1.0 percent in 2017 and 1.3 percent in 2018. It had previously forecast the economy to grow 0.9 percent this year.
"The sad thing about this forecast is that net export impact is negative this year, and close to zero in the coming years," said Mika Kuismanen, the head of the ministry's forecasting unit.
"We continue to lose export market share through the forecast horizon."
Finland is yet to return to 2008 levels of economic output for reasons ranging from high labour costs to the decline of Nokia's former phone business and a recession in neighbouring Russia.
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