Finland’s economy will pick up gradually : forecast for the Finnish economy : December 2024

Abstract

Finland is making a slow recovery from recession. The economy will show a contraction of 0.5% for 2024. Uncertainty in the global economic outlook is dampening export growth. The improvement in private consumption is slow, because confidence in the economy is weak and unemployment still rising. On the other hand, a further reduction in interest rates is anticipated, which will support investment and consumption. Finland’s economy is forecast to grow by 0.8% in 2025, and by 1.8% in 2026 and 1.3% in 2027. Inflation will stay below 2% in the immediate years ahead. The growth pick-up in the economy and the Government’s substantial fiscal adjustment measures will strengthen Finland’s public finances, though these will continue to be deeply in deficit.