Finland: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland

2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland

Volume/Issue: Volume 2022 Issue 025

Publication date: January 2022

ISBN: 9798400201011

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Labor , Money and Monetary Policy , Public Finance , Business and Economics - Statistics , International - Economics , liability positions vis-à-vis nonresident , money market rate , potential GDP , exchange arrangement , transparency policy , currency of Finland , Employment , COVID-19 , Labor markets , Loans , Global

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Summary

With strong policy support, Finland suffered a relatively mild economic contraction in 2020 followed by a swift recovery in 2021. Medium-term growth prospects are less strong, due to adverse demographics and low productivity growth—trends that precede the pandemic. Public debt has increased due to pandemic-related support and will remain on a rising trajectory in the medium term, largely reflecting permanent spending increases.