The economy is recovering slowly on the back of strengthening domestic demand. However, exports remain weak, the recent pick-up in private consumption was partly due to temporary factors and uncertainty, both domestic and global, is high. Hence, output growth is projected to remain sluggish and unemployment, which is currently stabilising, to stay high.
The euro area monetary policy stance is supporting the recovery, but fiscal consolidation exerts a drag. The government has embarked on an ambitious structural reform programme to enhance competitiveness, labour market flexibility and fiscal sustainability. However, it is facing resistance, which risks delaying growth-enhancing reforms. The uncertainty regarding policy may weigh on the recovery.
Productivity has declined since 2007. Although this mainly results from poor performance in manufacturing and notably information and communication technologies, the service sector has also tended to underperform. Policies need to enhance framework conditions further and support innovation to revive investment and foster inclusive growth.
>> Productivity country profile for Finland
Economic Survey of Finland (survey page)
The Economic Consequences of Brexit: A Taxing Decision (main web page with paper)
Structural reforms in a difficult time (blog + paper)
Public spending efficiency in the OECD (blog + paper)