Finland’s economic performance has lagged behind the OECD average over the past decade. Productivity growth has weakened, widening the gap in output per hour worked. While employment rates remain below the OECD average, the participation rate has improved, although convergence has slowed in recent years.
Addressing the slowdown in productivity while ensuring long-term fiscal sustainability requires broad structural reforms. Improving value for money in infrastructure investments and reducing remaining barriers to trade and FDI would strengthen competitiveness and support sustainable growth. Broadening the indirect tax base, together with boosting R&D and venture capital investment, would foster innovation and economic resilience.
