The European Commission has raised its prognosis for Finland's economic growth. On Thursday the Commission forecast GDP growth of 3.4 percent in Finland this year, up from its previous estimate of 2.7 percent.

The EU executive said it expects economic growth to continue in Finland next year, but at a slightly slower pace. According to its latest forecast, the nation's GDP should expand by 2.8 percent in 2022.

In the medium term, Finland's economic growth is expected to be primarily driven by higher domestic demand and a rise in investment.

The Commission forecasts that Finnish employment will continue to improve towards pre-crisis levels.

Finland weathered crisis better than eurozone average

In most of the other 18 eurozone countries, growth figures are better than Finland's at the moment - compared to last year, when Finland weathered the economic shock of the crisis much better than the zone's average.

Overall the Commission said the eurozone's economy will recover faster than expected. It again hiked its growth forecast for this year in the bloc to five percent, up from 4.8 percent forecast last summer.

However European Economic Commissioner Paolo Gentiloni warned that the recovery is fragile.

"There are three key threats to this positive picture: a marked increase in Covid cases, most acute in areas where vaccinations are relatively low; rising inflation, driven largely by a spike in energy prices; and supply-chain disruptions that are weighing on numerous sectors," he said on Thursday in Brussels.

The Commission forecast eurozone growth of 4.3 percent next year, slowing to 2.4 percent in 2023. Meanwhile it predicted that inflation in the eurozone will rise by 2.4 percent this year and by 2.2 percent next year.