MoF Joins Foreign Banks in Projecting 2014 Growth at Under 1% ({{commentsTotal}})

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In a projection to be released Monday, the Ministry of Finance will call for 0.5 percent economic growth this year followed by 2.5 percent next year.

Prime Minister Taavi Rõivas provided the preview at the Cabinet press conference on Thursday.

Rõivas characterized the figures as positive given the international economic context. As recently as the spring, though, the MoF had forecasted 2.0 percent and 3.5 percent growth, respectively, for 2014 and 2015.

Earlier this week, SEB fine-tuned its economic forecast for this year and next, while Swedbank lowered theirs.

SEB said growth would be 0.5 percent in 2014, just as it did three months ago, but put next year's growth at just 1.8 percent instead of 2.3 percent.

Swedbank said the economy would grow by 0.8 percent this year, down from 1.8 percent. It lowered its forecast for 2015 by 0.7 point to 2.3 percent.

SEB said 2014 inflation would be 0.1 percent and Swedbank, 0.3 percent. Next year would be 1.6 percent and 2.5 percent, the respective banks said.