The Finnish Economy is projected to grow at a slower pace next year, according to the Bank of Finland. The national economy is expected to expand by 1.2% in 2025, a downgrade from the earlier forecast of 1.7% due to muted global trade and government policy changes.
The recovery is anticipated to start in the second half of this year, driven by slowing inflation and improved purchasing power. Despite concerns about sluggish growth, the investment environment is expected to improve in the coming years as demand increases and financing becomes more accessible.
With the Eurozone economy forecasted to grow, Finnish exports may face challenges due to their focus on manufacturing. The government’s effort to balance public finances will be complicated by rising debt, but measures are in place to address these challenges.
The ECB’s recent interest rate cut is expected to support Finland’s recovery, with a focus on strengthening innovation and promoting work-based immigration for economic growth.