Finland's real GDP still remains below the level achieved before the start of the crisis. After a sharp drop in 2009, the economy recovered in 2010 and 2011 but failed to make up for the losses in exports and investment. However, Finland's financial system was stable and the country was considered being a safe haven when the sovereign debt crisis started. Finland fell back into recession in 2012 which lasted until 2014. In 2015 real GDP is forecast to have bottomed out. A sluggish recovery is expected in 2016 and 2017, with unemployment staying above 9 % over the next years.
Finland is experiencing macroeconomic imbalances. Finland has recorded competitiveness losses linked to the decline of key sectors and companies and wage growth above productivity, resulting in a sharp decline in the current account balance. Private debt is large, which may constitute vulnerability, although the financial sector is sound. Cost competitiveness has gradually started to improve and the fall in export market shares has slowed down, while the current account is moving towards a surplus. Deleveraging pressures are expected to remain limited. Moderate wage increases have been agreed by social partners and initiatives have been launched to revive growth in high-tech sectors and to facilitate exports. Recent measures on household mortgages may limit the growth of household indebtedness.
Read a complete analysis of Finland's economy in the country report 2016 [2 MB]
2015 recommendations in brief
The Commission has made four country-specific recommendations to Finland to help it improve its economic performance. These are in the areas of: public finances; pensions and health; labour market and wage-setting; retail.