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Finland’s economic recovery remains fragile, but the country is well positioned to accelerate productivity and transition to green industry by using its strengths in renewable energy and technical innovation, according to a new OECD report.
The organisation forecasts Finnish GDP growth of 0.7 percent in 2025 and 1.1 percent in 2026. Lower interest rates and rising purchasing power are expected to support the rebound, while inflation is predicted to stay just under 2 percent.
Presenting the report in Helsinki, Luiz de Mello, Director of Country Studies at the OECD, said improving productivity is essential to lifting living standards in the long term.
“This will require sustained technological innovation, access to a highly educated workforce, and greater private investment, especially in support of the green transition,” he said. He spoke alongside Finance Minister Riikka Purra.
One of the central concerns highlighted by the OECD is Finland’s stagnant rate of participation in higher education, which has remained unchanged for two decades. The resulting skills mismatch is most evident in high-skilled sectors facing acute labour shortages.
To address this, the report recommends expanding access to universities, boosting funding for applied research, and increasing the availability of short, specialised postgraduate programmes. These steps, the OECD argues, would help raise enrolment and enhance productivity across sectors.
The report also notes that while Finland has made progress in attracting skilled migrants, more action is needed. It recommends expanding language training, offering more internship opportunities to international students, and improving integration policies to better harness the potential of highly educated immigrants.
Support for working mothers remains another area for development. The OECD suggests improving childcare incentives to increase labour market participation among mothers with young children, which would also help reduce the gender pay gap.
With abundant renewable electricity, Finland has a clear advantage in developing green industries. The OECD urges the country to make better use of EU green investment funds and reduce barriers to hiring skilled workers.
In forestry and land use, the report calls for more ambitious biodiversity policies and improvements in forest management. Removing legal, financial, and skills-related obstacles to reducing industrial carbon emissions is also necessary, it says.
The OECD adds that Finland must strengthen governance in its Arctic territories to meet the growing pressures from competing land use demands, including those tied to defence, mining, tourism, and clean energy projects. The region is warming faster than other parts of the country, intensifying the need for a coordinated strategy.
HT
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Source: www.helsinkitimes.fi
