HELSINKI (MNI) – Growth in the global economy will continue to
recover over the medium-term but it will be more sluggish than before
the crisis, the Bank of Finland and its Governor Erkki Liikanen said
Tuesday.
In a statement accompanying the presentation of the central bank’s
outlook for the Finnish economy, Liikanen noted that “the global economy
has begun to recover from its most severe peace time crisis” and that
“monetary and fiscal policies have been exceptionally supportive of
economic growth and the financial markets.”
However, the support provided during the recession is now being
withdrawn in a “step-by-step” process, the bank noted.
“Global growth is expected to recover further in the immediate
years ahead, but to remain slower than we have become accustomed to and
geographically uneven,” it predicted. “The financial sector’s need to
strengthen balance sheets will subdue lending, and this could lead to
slower-than-forecast growth,” it warned.
[TOPICS: M$X$$$,M$$EC$,M$$CR$,MGX$$$]
