Forecast: General Government Expenditures on Defence in Finland

Between 2013 and 2023, Finland's government defense expenditure has demonstrated a downward trend. In 2023, the expenditure stood at 2.1 units, representing a year-on-year decline of 1.41%. This decline has been ongoing, with varied annual percentage decreases and occasional slight increases. Over the last five years, expenditure declined at a CAGR of 1.19%, illustrating a consistent reduction in defense spending.

Looking ahead, forecasts predict a continued downward trend in defense expenditure. By 2028, the expenditure is expected to reduce further to 1.92 units. The projected trend for the next five years indicates an average annual decline of 1.4%, culminating in an overall reduction of 6.8% over the period.

Future trends to watch include geopolitical developments that may necessitate changes in defense budgeting, technological advancements in defense that could either justify higher or lower spending, and economic factors which may impact the allocation of government funds across various sectors, including defense.