Economic Survey, Spring 2017

Abstract

The Finnish economy is on track to post growth of 1.2% in 2017. This growth is more broad-based than last year: not only private consumption and investment growth, but also exports growth is picking up. Growth prospects in the global economy and world trade are looking up, despite being overshadowed by the threat of protectionism. World trade is set to grow by 3% this year and to slightly accelerate towards the end of the forecast period. The Finnish economy is bolstered by accelerating growth in the euro area and rebounding export demand in response to the weakening euro. It is projected that total output growth will come in at one per cent in 2018, climbing further to just over the one per cent mark in 2019. In 2018–2019 the main focus of growth will shift from private consumption to foreign trade. In 2017 private investment growth will be driven by business expansion and replacement investments as well as by household and investor housing purchase intentions