Finland has been facing a severe economic crisis for the past 16 years, with no signs of growth in sight. This has led to concerns about balancing public finances and increasing taxes, as discussed by economic influencer Björn Wahlroos. According to him, the main issue is that Finland’s economy is not growing, and without this growth, the deficit in the national economy will not be resolved, even with cuts and reductions in social security.
Wahlroos attributes the lack of growth in Finland to Nokia’s collapse and the departure of resources from the country. He finds it alarming that not only are people leaving Finland but also capital, investments, and capitalists are moving elsewhere. Finnish companies have been making investments abroad rather than in Finland, which is a concerning trend for the country’s economy.
To attract investments back to Finland, Wahlroos believes that improving competitiveness through factors such as taxation, strikes, and wage levels is key. Without these changes, he believes that Finland will continue to experience zero growth. Wahlroos emphasizes the importance of focusing on economic growth and job creation rather than just talking about justice and social security.
Statistics show that banks’ economic forecasts for Finland’s GDP growth in 2024 vary between negative and positive figures while investment forecasts for the year also show a range of estimates. Despite these challenges facing Finland’s economy, Wahlroos remains hopeful that if necessary changes are made, the country can reverse its economic downturn.
Finland has been struggling with an economic recession for over a decade now. The lack of growth has caused significant problems with balancing public finances and increasing taxes. Economic influencer Björn Wahlroos has sparked discussions on these issues by highlighting his concerns about Nokia’s collapse and resource flight from the country.
Wahlroos blames Nokia’s collapse for stagnating economic growth in Finland. He argues that without this progression, it will be challenging to resolve financial deficits even with cuts or reductions in social security benefits.
The entrepreneur believes that Finnish companies have been investing abroad instead of domestically due to poor competitiveness factors such as high taxes, strikes, low wages levels among others. To attract back foreign investments to Finland; improvements must be made regarding these aspects.
According to him, focus should shift from discussing justice or social security issues towards revitalizing economic growth through creating jobs opportunities.
Despite ongoing challenges facing Finnish economy such as negative or positive GDP forecasts ranging from -2% -3% respectively while investment forecast ranges between €8billion-€13 billion respectively according to banks statistics; Walhross remains optimistic about reversing this decline if required changes take place.
