Finland: Still in tunnel, but light at the end
- Recovery of Finland’s economic growth in 2016-2017 will be sluggish and will be supported primarily by improving investments and exports. However, a decreasing labour force, weak investments, and falling profitability are reducing Finland’s potential GDP growth.
- The labour market is under pressure: unemployment remains elevated as the business sector is cautious about increasing its labour costs and is targeting higher productivity growth. Wage growth has slowed, but it still grows faster than productivity, thus aggravating the price competitiveness of Finland’s exporting sector.
- The government has set ambitious plans for reforms in order to revive the economy and strengthen public finances. The high level of unemployment and population aging are increasing government expenditures. At the same time, due to the economic recession and expected sluggish recovery, tax and other government revenues are insufficient to balance the government budget.
For more information please contact Tõnu Mertsina, +372 888 7589, firstname.lastname@example.org