The Bank of Finland has cut its economic growth forecast for the next two years and said the government must make “substantial” spending cuts and increase taxes.
It blames the eurozone debt crisis for reducing Finland’s exports and consumer spending.
In 2012 the central bank believes gross domestic product will expand by just 0.4 percent. Back in June its prediction was for growth of 2.6 percent.
It lowered its view for 2013 growth to 1.8 percent from 2.4 percent.
At the same time Denmark’s central bank cut its economic growth forecasts.