The Finnish Economy is showing signs of recovery from the recent recession, according to the Ministry of Finance. The latest economic forecast predicts a 0.2 per cent contraction this year, followed by growth of 1.7 per cent in 2025 and 1.5 per cent in 2026. Export demand is expected to rise due to improvements in the eurozone and strong growth in the US, while the construction industry is set to rebound after a period of stagnation.
However, ongoing government efforts to consolidate public finances may limit some aspects of economic growth. The deficit is forecasted to be 3.7 per cent of GDP in 2024, exceeding the EU’s three per cent limit. Despite challenges, the Ministry of Finance remains confident in the economy’s resilience and potential for recovery.
Despite challenges, the Ministry of Finance remains confident in the economy’s resilience and potential for recovery. Though employment may worsen initially, the Ministry anticipates improvement as the economy grows.
Overall, the Finnish economy is on track for a positive trajectory, with cautious optimism for future growth and stability.