Finland’s public finances will stabilise next year, and the government is getting close to its employment targets.
That’s the latest estimates from The Research Institute of the Finnish Economy ETLA released today.
ETLA estimates that Finland’s total industrial output will grow by 2.8% this year, and finally exceed 2008 levels. Next year, growth is forecast at 2.4%.
According to ETLA estimates, the employment rate will rise to 71.6% this year which is very close to the government’s target of 72%.
Also today, Statistics Finland reported that February’s seasonally adjusted employment rate was 71.1%.
Last September, ETLA predicted only a 2% growth rate for 2018. The new upward correction is mainly due to the fact that the international economy has grown more strongly that forecast, which has improved the outlook for Finnish exports.
This year, exports are expected to grow by 4%.
But ETLA Research Director Markku Kotilainen warns that there is still a risk that economic realities could turn out worse than the forecasts.
One worrying factor is US President Donald Trump’s threats of trade wars and slapping tariffs on imports to America.