Finland’s Economic Growth at slowest pace in 20 months.

Having accelerated to 3.4 percent annual pace in January as domestic demand has slowed growth.

The website Statistics Finland published data that has revealed that despite this slump economic output is actually increasing as a growth of 0.9 percent was experienced in January.

PTT research institute actually forecast a private consumption rate of 3 percent although during 2008 and 2009 it is predicted that growth will more likely be based upon the domestic market notably in household consumption.

Retail sales have boosted which are currently growing at their fastest pace in over 22 years.

This is mainly as a result of falling unemployment and rising wages, especially the 11.7 percent pay rise handed to government employees over the next 30 months, which has fed it way through the economy.

Erkki Liikanen, the Governor of the Bank of Finland has also reassured the public in a speech last week where he revealed that the average wages in the country are set to rise significantly faster than the euro area average.

Within the domestic economy, the processing and service industries have experienced an annualized 4.5 percent growth although previously important areas of primary production such as agriculture and forestry have actually declined by 9 percent.

Story link: Finland’s Economic Growth at slowest pace in 20 months.