Finland’s economy has displayed resilience in the face of severe international economic and security turbulence and is gradually recovering from recession. Some fiscal consolidation measures have been taken but public finances are coming under pressure from an ageing population and growing defence needs and more reforms are required to put public debt on a downward path.
Widening the range of shorter post-graduate qualifications and greater business funding of higher education would free up resources for more places for first entrants and raise Finland’s higher education attainment rate, which is below that of Nordic peers. More internships for foreign students and greater support to learn Finnish would help attract and retain more high skilled migrants, boosting flagging productivity growth and filling skill shortages. Better management of Finland’s large forests, including reducing soil emissions, is crucial to get back on track towards the ambitious 2035 net zero emissions target. Finland’s enormous potential to generate renewable energy offers it a remarkable opportunity to make the most of the transition to a low-emissions economy. However, this requires careful balancing of competing land-use claims in the Arctic, which is already facing greater pressure from climate change and where much of this transition is slated to take place.
SPECIAL FEATURES: HIGHER EDUCATION; IMMIGRATION; TRANSITION TO NET ZERO; CLIMATE CHANGE; THE ARCTIC
