Economic growth in Finland will reach 0.7 percent this year and 1.1 percent next year, according to the Organisation for Economic Co-operation and Development (OECD).
On Tuesday, the group published a global economic outlook it characterised as "increasingly challenging".
It listed a number of risks that threaten economic growth, including "substantial increases in trade barriers, tighter financial conditions, weakened business and consumer confidence, and elevated policy uncertainty".
The group's assessment of Finland was relatively positive, given that the country's economy has contracted over the past two years.
It said lower interest rates were boosting consumption and investments, but also pointed out that global trade tensions and slower economic growth were hindering Finnish export growth.
Hybrid warfare
The organisation said potential risks to the Finnish economy include Russian hybrid warfare efforts — including damaging infrastructure and cyber attacks — as well as a general increase in global trade barriers.
It said the threat of Russian hybrid attacks has undermined business confidence and could potentially deter foreign investment.
Regarding Finland's public finances, the OECD said it would be important to reverse the trend of growing state debt — despite economic pressures caused by its ageing population and increased defence spending.
It said the country should improve the cost-effectiveness of its healthcare system and also suggested that its value-added tax rate (VAT) should be reduced once the economy swings back to a steady, upward heading.
Meanwhile, the OECD's outlook said that global economic growth would slow to 2.9 percent both this year and in 2026, due to an increase in trade barriers, economic uncertainty, as well as declining confidence.
