Bank of Finland cuts Europe growth forecasts on Brexit, Italy problems
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
HELSINKI (Reuters) - Finland's central bank cut on Thursday its forecast for economic growth in Europe for next year, citing impacts from Britain's vote to leave the EU as well as weakened economic prospects in Italy.
The Bank of Finland slightly lifted its 2016 growth forecast for the EU22 countries -- the euro zone, Britain, Sweden and Denmark -- to 1.7 percent from a previous 1.6 percent, but cut it to 1.3 percent for 2017 and 1.6 percent for 2018 from 1.8 percent previously for both years.
"Europe's growth will be dampened also by internal factors which are not linked to Brexit, such as deterioration of Italy's growth outlook and problems in its bank sector," the bank said.
It forecast inflation within the same group of countries to be 0.4 percent this year, 1.4 percent in 2017 and 1.5 percent in 2018.
"Improvements in economic prospects and the ongoing accommodative stance of monetary policy will gradually begin to boost inflation. However, longer-term inflation expectations remain muted, which is a worrying trend," the bank said.
(Reporting by Jussi Rosendahl; Editing by Toby Chopra)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wealth manager St James's Place in asset boost after Brexit vote
- Islamic State takes control of half Iraqi town near Jordan-Syria border - sources
- Explosion hits southern Turkey's Antalya, some casualties: CNN Turk
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!