The Finnish economy is slowly turning the corner. After contracting for two consecutive years, Finland’s output stabilised in 2014 and the recovery is expected to continue in 2015 and 2016. An increase in net exports helped to soften the negative impact of a further large decline in investments. Weak labour market conditions and wage moderation will continue weighing down on private consumption.. Finland’s external position has deteriorated in the past decade, but remains sustainable. Public finances have been in deficit since 2009 and public debt is gradually increasing.
Finland is experiencing macroeconomic imbalances, which require policy action and monitoring. In particular, risks related to the weak export performance in a context of industrial restructuring deserve attention. While the decline in export market shares and manufacturing industries has largely come to an end investment remains low and potential growth has declined. Private-sector debt has stabilised and does not appear to be a source of immediate concern, but its relatively high level calls for close monitoring.
Read a complete analysis of Finland's economy in the country report 2015 [933 KB]
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.