Forecast: Government Expenditure on Defence by Government Level in Finland

Over the period from 2013 to 2023, Finnish government expenditure on defense demonstrated varied trends. Starting at 2.99 billion Euros in 2013, there was a general decline until 2015, partly recuperating in 2016. Post-2019 saw a significant increase with a peak in 2020 at 3.32 billion Euros. The subsequent years fluctuated but showed an overall uptrend, culminating at 3.13 billion Euros in 2023. The year-on-year variations indicated periods of both decline and growth, with a sharp rise in 2020 and moderate growth thereafter. The Compound Annual Growth Rate (CAGR) over the last five years leading to 2023 was 2.4%, reflecting a steady upward trajectory in defense spending.

Looking forward, forecasted data from 2024 to 2028 suggests consistent growth in defense expenditure, with projections indicating increases every year to reach 3.3 billion Euros by 2028. The forecasted five-year CAGR from 2024 to 2028 stands at 0.83%, denoting a stable but slower growth rate compared to previous years.

Future trends to watch for include:

• Potential fluctuations due to geopolitical developments in Europe.
• Impact of economic conditions on public budget allocations.
• Technological advancements and their influence on defense spending priorities.