Trade policy and uncertainty will slow the growth in Finland's economy. A clearer improvement in economic conditions will not be seen until 2026. Employment will gradually improve. Inflation will remain low.
A trade war escalation would significantly weaken Finland’s exports and economic growth. By contrast, an easing of trade policy tensions would cause Finland’s exports and economic growth to pick up.
Inflows into the labour force have been higher than outflows in recent years. This has led especially to a rise in employment, but in recent years also a simultaneously high unemployment rate.
Along with many other European countries, Finland intends to increase its defence spending. This would increase Finland’s public expenditure and spur economic growth. The larger the share of defence procurements purchased from within the euro area, the more favourable the impact.
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