Finland's economy has moved out of recession but the government may still need to cut public spending by a further 1 to 2 billion euros if growth doesn't pick up by next spring, Finance Minister Petteri Orpo said on Thursday. A finance ministry forecast showed that economic growth in the Nordic country would accelerate this year, but slow down again in the next two years due to weak export outlook and structural problems in the labour market.
Finland's centre-right government is on track to make 4 billion euros ($4.19 billion) of spending cuts by 2019 and, with reforms, it aims to save 10 billion by 2030. Orpo did not say when the additional 1 to 2 billion euros in cuts might come. "The recession is over, but this growth rate is not enough to reach the government programme target of curbing our debt and zero deficit by 2021", Orpo told Reuters.