Finland's ministry of finance announced on Monday that the country may fall into recession due to the accelerating inflation and stagnant growth,  Anadolu Agency reports. 

The ministry said in a statement that the country is facing a period of "stagnant growth and the risk of the economy ending up in a recession cannot be ruled out."

The ministry predicted that the inflation will hit on average 6.5 % this year, which is up from June's 5.8%, while next year, the inflation is expected to rise to 3.2% and not to 2.7% as previously thought.

The gross domestic product (GDP) is expected to grow by 1.7 % this year, while in 2023, it will be 0.5 % which is a lot less when compared to the 1.1% predicted in June this year.

Accelerating inflation is cutting households' purchasing power and consumption opportunities as "uncertainty, energy shortages, fast inflation, decaying purchase power and rising rates will cut into the growth of consumption and investments everywhere," said the ministry.

Russia's attack on Ukraine, which began at the end of February, cast a shadow over the economic outlook, and it threatens to push not just Finland but entire Europe's economy into recession.