People work at a city infrastructure improvement site in Helsinki, Finland, 3 May 2017; Credit: Reuters / Ints Kalnins

HELSINKI (Reuters) - On Monday 19 September 2022, Finland's Finance Ministry cut its economic growth forecast for 2023 and said the country was at risk of a recession.

The ministry now predicts gross domestic product (GDP) to grow by 1.7% in 2022 and by 0.5% next year when in June 2022 it had expected the growth to be 1.4% in this year and 1.1% in 2023.

"We face a period of stagnant growth and the risk of the economy ending up in a recession cannot be ruled out", the ministry said in a statement.

"Uncertainty, energy shortages, fast inflation, decaying purchase power and rising rates will cut into the growth of consumption and investments everywhere", it said.

It estimated consumer price inflation of 6.5% this year, up from 5.8% seen in June, and 3.2% in 2023, up from 2.7% predicted previously.