HELSINKI, Sept. 14 (Xinhua) — Finland’s economy is expected to shrink by 0.3 percent this year and grow by 0.8 percent in 2024, private non-profit institute ETLA Economic Research said in a survey published on Thursday.
The country’s economy is expected to shrink this year as investment declines and inventories are unloaded, but also because private consumption declines. Housing construction and public investment will shrink sharply while public consumption rises, the survey said.
ETLA chief executive Aki Kangasharju, speaking at a press conference, called for a greater emphasis on immigration and productivity improvements.
He emphasized the need for appropriate incentives in the green energy sector, noting that although Finland’s employment level is already high, a significant proportion of jobs are part-time, and this does not generate significant tax revenue.
Finland’s exports are expected to decrease by 0.3 percent this year. Imports will decline more than that (-3.4 percent), so net exports will support economic growth going forward.
“The positive development in the global economy comes primarily from developing countries, with China showing a growth rate of 4.5 percent. However, in Finland’s most important export markets, such as Sweden and Germany, we expect negative growth this year,” says Paivi Puoti, ETLA’s forecast manager.