Forecast: Finland's economy booming

The global economy is still growing strongly, but there are already certain signs that the growth rate is levelling off. The deceleration in euro area growth has long been expected in the forecasts.

Finland’s GDP grew 1.2% quarter-on-quarter in the first quarter of 2018 and 3.1% year-on-year. The Finnish economy has now grown for ten consecutive quarters.

Following the turn in the economic cycle, growth in labour costs have slowed, and the rise in the output price has been most clearly linked to stronger corporate profitability.

An extensive use of restrictions on international trade would substantially weaken global trade and economic growth in Finland.

Unprofitable firms occupy economic resources and slow down productivity growth.

Output is growing faster than its potential and the Finnish economy is expected to remain at its cyclical peak during 2018–2020.

The period 2004 - 2017 under review was particularly challenging for forecasting.

The economy has recovered from the recession following the financial crisis, but growth is expected to remain below its pre-crisis level, averaging 1.5% per annum over 2026–2040.