Finland to grow more slowly.

On March 20, 2007, the Bank of Finland (BOF) published its economic forecast for the country for 2007 through 2009. During 2007, the BOF expects GDP to grow 3.0 percent, and 2.7 percent each year for 2008 and 2009. The International Monetary Fund (IMF) estimates are similar for 2007 (3.1 percent) and the same for 2008 (2.7 percent).

Other BOF forecasts include a continuing decline in private consumption growth. In 2005, the BOF said private consumption had grown 3.8 percent when compared with 2004. In 2006, the rate of growth of private consumption declined to 3.0 percent. In 2007, the BOF expects the rate of growth of private consumption to decline further to 2.9 percent, then to 2.8 percent in 2008, and finally to 2.7 percent in 2009.

The BOF's estimates of unemployment for 2007 through 2009 show considerable volatility. In 2006, the rate of unemployment declined 6.9 percent when compared with 2005. For 2007, the rate of unemployment is expected to decline even more dramatically moving downward at 11.9 percent. In 2008, the rate will be 1.8 percent less. And in 2009 the rate of unemployment will be 0.9 percent less than it was in 2008.

The IMF says that Finland's unemployment rate will be 7.5 percent in 2007, and 7.4 percent in 2008. The IMF's view of decline in unemployment between 2006 and 2007 is not quite as dramatic, saying the rate of unemployment in 2006 was 7.7 percent.