Expectations for the Future of Finland †MyAssignmenthelp.com

Question: Discuss about the Expectations for the Future of Finland. Answer: Introduction: Expectations for the future of Finland can be described with the help of some macroeconomic factors like future trend of gross domestic product (GDP), private and government consumption, final domestic demand and net export from with it can be predicted that the county can either develop its economic condition in future or can experience economic slowdown (Hansen 2017). Moreover, this view can also be supported by the future trend of GDP deflator, unemployment rate, households saving ratio and gross debt of the general government as those factors can influence the economic condition of a country significantly. Discussion: Through analyzing the percentage change of GDP of Finland, based on the market prices of 2010, it can be stated that the countrys national income is going to increase in future but at a slower rate. The chief reason behind this slowdown can be described with the help of total domestic demand and net export of the country, where both factors also can achieve growth at a slower rate (Nikunen 2017). This further implies that the economic condition of Finland can experience a poor situation due to decrease in private and government consumptions along with stockbuilding. Hence, the country cannot accumulate sufficient amount of capital to invest further, which in turn can hamper the total production of the country in future. This situation can further decrease the countrys export while to maintain the same level of consumption, Finland needs to import more goods and services than before. Those economic phenomenons can hamper the countrys growth rate in future and it can be very difficult for Finland to overcome from this trap of vicious cycle of poverty. In addition to this, other factors like GDP deflator, unemployment rate household savings ratio and gross debt of the government can also be taken under consideration to describe the future expectations of this country (Davis, Konstantinidis and Tripodis 2017). The GDP deflator can be increased in future at an increasing rate, which means the country is going face inflation in future. However, the unemployment rate of this country can be increased at a slower rate though it is going to remain at a higher level. On the other side, household savings ratio may remain at stable position along with the gross debt of the government. Hence, after analyzing the changing pattern of those macroeconomic factors, it can be predicted that the countrys economic condition is going to face some constraints in future. In this context, it can be mentioned that the countrys national income is chiefly depended upon the exports. However, the changing pattern of demand in international market for the intermediate and investment goods can hamper the export trend of Finland in future, which in turn can influence the GDP of this country to decrease (Coad and Vezzani 2017). In addition to this, the changing pattern of household consumption can also be described the help of GDP deflator, where it can be seen that due to high level of inflation, purchasing power of domestic people is going to decrease. Hence, in future the standard of living can be declined and consequently, the citizens of Finland can experience poor condition compare to present year. Future expectations: Thus, Finland needs to take some immediate action to protect its economic condition in future. For this effective policies regarding international trade and business is very important as it can help the country to increase its national income at a higher rate. Moreover, the government of this country can expand its expenditure through investment, which in turn can also develop the economic condition of this country. Moreover, some affective governmental policies are also required to control the increasing trend of inflation otherwise; Finland cannot increase its domestic consumption (Leimbach et al. 2017). Hence, the country needs to focus on the future development of its national income as it can further helps the country to reduce its gross debt and can also influence to increase the household savings ratio for future investment. As the country is going to face higher level of unemployment, it is also important to generate more employment opportunities as it can help the countrys n ational and domestic consumption to increase in future (Pierre 2018). Hence, it can be expected from Finland that it can improve its economic conditions in future by taking proper economical policies that can influence the countrys national income to increase along with net export and aggregate demand. Conclusion: In conclusion, it can be stated that Finland has achieved a well economic position in 2017 though it can be declined in future due to slow growth trend of national income along with private and governmental consumption and net export. On the other side, some negative factors like inflation rate, unemployment rate and total debt of the government is going to increase or may remain stable. Hence, the government of Finland may take initiative to protect this country. References: Coad, A. and Vezzani, A., 2017.Manufacturing the future: is the manufacturing sector a driver of RD, exports and productivity growth?(No. 2017-06 Classification-JEL; O3, O14; O47). Joint Research Centre (Seville site). Davis, L.E., Konstantinidis, C. and Tripodis, Y., 2017. A proposal for a federalized unemployment insurance mechanism for Europe.European Journal ofEconomics and Economic Policies: Intervention,14(1), pp.92-116. Hansen, L.P., 2017. Comment on" Survey Measurement of Probabilistic Economic Expectations: Progress and Promise". InNBERMacroeconomics Annual 2017, volume 32. University of Chicago Press. Leimbach, M., Kriegler, E., Roming, N. and Schwanitz, J., 2017. Future growth patterns of world regionsA GDP scenario approach.Global Environmental Change,42, pp.215-225. Nikunen, M., 2017. Young people, future hopes and concerns in Finland and the European Union: classed and gendered expectations in policy documents.Journal of Youth Studies,20(6), pp.661-676. Pierre, J., 2018. Beyond the East-West Dichotomy: Economic Development Policies in Asia and Europe. InPublic Policy in the'Asian Century'(pp. 315-335). Palgrave Macmillan, London.