Finland deserves a thorough renewal

Finland. The happiest nation in the world. For the ninth consecutive year.

The same Finland. No real economic growth for nearly 20 years. The country is withering, and young people’s faith in the future is being tested.

For a year, Sitra has worked to identify the realistic foundations for Finland’s sustainable growth and to explore opportunities for new growth. The result is the Growth Atlas 2026, which brings together the latest knowledge and well‑founded perspectives from nearly a hundred experts.

During this work, it has become evident that Finland’s economic challenges are deep and structural. The level of skills among young people is declining, the population is shrinking and ageing, natural capital is diminishing, and we have become overly cautious preservers.

Yet Finland still possesses world‑class innovation capacity, skilled people, and advanced societal systems built on trust.

To reverse Finland’s downward slide, we need powerful, long‑term reforms aimed at renewing the economy.

The Growth Atlas is only the beginning – an invitation to discuss Finland’s future direction.

Its conclusion is clear: a better future for Finland will not emerge solely from cuts and adjustments. We must also be able to invest persistently in a new rise.

If Finland is to become the best place in the world to invest in the future, we must be willing to let go of the old and commit to building a world‑class environment for creativity.

A credible promise about the future would strengthen trust, immediately support urgently needed investments, and open pathways to sustainable growth. Such a promise could be called the Growth Agreement.

The Growth Agreement would be a bold and long‑term national strategy that transcends government terms and party lines.

It would define the set of reforms required to launch sustainable growth. Its adoption would mean a conscious decision to invest in the future and break free from the path of withering.

Based on the analysis conducted during the preparation of the Growth Atlas, six strategic guidelines can be summarised – together they could form the foundation of a new Growth Agreement:

1. Invest in people. Develop a long‑term population and immigration strategy with broad political support. Ensure the development of young people’s skills and maintain a high level of education. Reform research and innovation incentives to ensure that top know‑how is put into practice and applied specifically in Finland.
2. Promote a culture of growth. Encourage owners’ attitudes and incentives towards risk‑taking and growth. This requires a strategic reform of tax policy so that it rewards bold investment and renewal rather than cautious preservation.
3. Build a world‑class investment environment. Make Finland the best place to invest in expertise, innovative technology, clean energy, service development and industrial production by ensuring predictable and attractive policies. This includes smoother permit processes and predictable regulation.
4. Define intergenerational fairness. Reform pension and service commitments as part of decisions aimed at securing the long‑term sustainability of public finances. Make credible decisions now to end the cycle of constant anticipation of savings.
5. Ensure long‑term commitment. A credible promise about the future requires broad political consensus on key drivers of growth, such as education, work‑based immigration, and innovation policy. The combination of effective decision‑making and implementation can create the trust required for investment and belief in the future.
6. Disagree with respect. At the heart of the Growth Agreement lies the pursuit of the common good. In this, everyone deserves respect regardless of whether they come from west or east, left or right, countryside or city. Finland does not abandon the weak but also values the strong. Respect builds trust, and trust is the foundation of growth.

The Growth Atlas 2026 report is only the beginning. It launches a wide‑ranging series of discussions, more in‑depth and concrete ideas, and growth initiatives. The next publication, the Growth Atlas 2027, is already on the horizon, where we can together deepen the new themes emerging from the ongoing dialogue.

We hope this report will be well‑used and serve as a practical tool as we steer Finland away from the path of withering.

The future is made. Together.

Read more about The Growth Atlas