OP economists' economic forecast

Economy in a tight spot - Seite 2

The fiscal deficit will slide to slightly below 3% of GDP in 2016 as the economy recovers mildly and cutbacks reduce expenditure. The euro growth in government debt will not slow much, however.

Economic expansion may fall short of expectations if growth in the export markets subsides further due to, for example, the weakness of the Russian and Chinese economies. Failure to agree on the "social contract" in the labour market and the ensuing economic policy uncertainty may weaken consumer confidence and reduce domestic demand. On the positive side, the globally lighter monetary policies may provide delayed support to export demand.

- Economic policies are again made in a very difficult and changing situation. Finland's weak development has already been noticed. Inability to carry out economic policy projects as planned will lead to growing unemployment and weakening confidence abroad. We cannot afford to fall back on our targets, notes Chief Economist Heiskanen.

For more information, please contact:               
Reijo Heiskanen, Chief Economist, tel. [phone]
Timo Hirvonen, Senior Economist, tel.  [phone]
Maarit Lindström, Consumer Economist, tel. [phone]

Twitter: @OP_Ekonomistit

OP Financial Group is Finland's leading financial services group providing a unique range of banking, wealth management and insurance services. OP's mission is to promote the sustainable prosperity, security and wellbeing of its customer-owners, customers and operating regions. Its objective is to offer the best and most versatile package of loyal customer benefits on the market. OP Financial Group consists of about 180 member cooperative banks, its central cooperative OP Cooperative, and the latter's subsidiaries and affiliates. The Group has a staff of 12,000 and 4.3 million customers.

As laid down in the applicable law, the member credit institutions and OP Cooperative are ultimately jointly and severally liable for each other's debts and commitments. Joint and several liability within OP Financial Group is based on the Laki talletuspankkien yhteenliittymästä Act (Act on the amalgamation of deposit banks). Pohjola Bank plc and OP Mortgage Bank are responsible for OP's funding on money and capital markets.
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Source: Pohjola Pankki Oyj via Globenewswire

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