Cyclical|According to the new forecast, the economy is growing moderately this year and unemployment is beginning to decline.
The abstract is made by artificial intelligence and checked by man.
According to the Business Research Institute, the Finnish economy will increase by 1.2 per cent this year and unemployment is decreasing.
Economic growth is supported by private and public investments and a recovery of household consumption.
The Unemployment Research Institute estimates that it will shrink to 8.2 % this year and 7.9 % next year.
Finnish This year, the economy will be cooled into moderate growth.
The Business Research Institute predicts that the economy will increase by 1.2 percent this year, 1.4 % next year and 1.2 % in 2027.
Economic growth will be increased this year, in particular, in the increase in private and public investments, but to a lesser extent growth in household consumption.
Next year, on the other hand, household consumption will increase, but investments will increase less than this year. In addition, government activities to balance public finances will slow down the growth of public consumption.
“Household consumption has not increased in real way since 2022, even though purchasing power has improved. This reflects consumers’ poor confidence in the economy. Even if money is not consumed because many are afraid of unemployment,” says the forecasting manager Päivi Puonti.
On this In public investments in Finland, the armed forces are expected to be expected in Finland by the end of the year. In addition, the government invests in research and development and road maintenance.
According to the forecast, private investment and consumption demand is slowly up and running, and even in construction, your business cycle is already at hand, as interest rates are reduced and purchasing power will improve. Machine and equipment investments in companies are also turning to cautious growth.
“Private investments have been reduced for two years, which is a deduction. To replace this investment launch, it requires companies to start investing clearly more than expected to overcome the pit.
Risks According to the Research Institute, the weaker economic growth is of the predicted economic growth. US President Donald Trump Import duties overshadow the prospects for international trade.
Increasing uncertainty about the extent of the trade warfalls the prospects of the euro area economy and Finland’s net exports will not increase. The significant additions of the European Union to mitigate the effects of the trade war to defense.
According to the research institute, the development of employment and unemployment has deviated from the usual cycle. For example, unemployment has grown more than expected on the basis of a business cycle.
Labor force However, growth will improve employment prospects in the future as economic growth starts with labor. According to the Research Institute, the government’s employment measures also contribute to the improvement of employment.
According to the forecast, the unemployment rate will shrink to 8.2 % this year and to 7.9 % next year. The Employment Research Institute estimates that this year will grow to nearly 77 %.