This week, Nordregio released the highly anticipated State of the Nordic Region 2024 report, providing an in-depth analysis of the current socio-economic landscape in the Nordic countries.
The report highlights significant demographic changes, including historically low birth rates and increasing immigration, which are reshaping the population dynamics of the region. Additionally, it sheds light on persistent regional disparities, with urban areas experiencing robust growth while rural and remote regions face ongoing challenges.
The findings offer valuable insights into the progress and obstacles related to the ambitious Our Vision 2030, aimed at making the Nordic region the most sustainable and integrated in the world.
Demographic Challenges
The Nordic population is facing historically low birth rates and an aging population. In 2022, the number of deaths exceeded births for the first time. This has led to a declining population, especially in rural areas. Finland is particularly affected, with low fertility and increasing childlessness. Despite this negative trend, positive net migration contributes to population growth, with 212,400 new residents in 2022, nearly three times as many as in 2020.
Labor Market Resilience
The Nordic labor markets have shown remarkable resilience after the COVID-19 pandemic but still face labor and skill shortages in key sectors such as healthcare, technology, and green industries. The report highlights the need for targeted training and integration measures to address these challenges.
Green Transition and Economic Growth
Despite global economic crises, the Nordic economies have performed strongly. The region’s average GDP per capita is USD 80,408, well above the EU average of USD 57,098. Norway stands out with the highest figures. The green transition is expected to create new job opportunities, especially in resource-rich rural areas, where 25.2% of employment in 2021 was classified as green, well above the OECD average of 1.6%. .
Inequalities and Regional Development
Income disparities within and between regions are increasing, threatening social cohesion. Sweden and Greenland have the highest levels of income disparity. The green economy can be a growth source, bridging the gap between urban and rural areas.
The Nordics on track towards carbon neutrality
The report emphasizes the Nordic countries’ leading position in decoupling economic growth from environmental impact, with the region on track to achieve carbon neutrality between 2035 and 2045.
Rolf Elmér , director of Nordregio, states: “The report provides us with essential insights to navigate the challenging times in the Nordic regions.”
Kudos to the designer Mette Agger Tang for the beautiful layout – and the user friendly and interactive graphs.
State of the Nordic Region is published by Nordregio every two years, providing a comprehensive overview of the latest trends and developments in the Nordics, including Denmark, Finland, Iceland, Norway, and Sweden, as well as the Faroe Islands, Greenland, and Åland. The 20th edition includes unique statistics on demographics, the labor market, and the economy.
Our forthcoming, “Nordic Insights”, will delve further into aspects on sustainable development in the Nordics! 🌍💚📊🌱
Stay tuned!
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