Finland: Staff Report for the 2002 Article IV Consultation
IMF Staff Country Reports, August 15, 2002
Source details
- Canonical URL
- Finland: Staff Report for the 2002 Article IV Consultation
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Bibliographic details
- Published: August 15, 2002
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451813173.002
Executive summary
- Economic growth in Finland slowed sharply in 2001 in the face of a deteriorating external environment.
- Growth is expected to pick up significantly by 2003 after staying somewhat lackluster in 2002.
- The abrupt contraction of the information and communications technologies market, as well as a decline in traditional exports, contributed to a significant decline in both export volume growth and real growth overall in 2001.
- The main challenges for economic policy are interrelated: addressing high unemployment and managing the impact of a rapidly aging population.
Key findings and drivers
- Export performance:
- Abrupt contraction in the information and communications technologies market reduced export volume growth in 2001.
- A decline in traditional exports further contributed to the export slowdown in 2001.
- Real economy:
- Significant decline in real growth overall in 2001.
- Growth expected to remain somewhat lackluster in 2002, with a significant pickup anticipated by 2003.
- Structural challenges:
- High unemployment.
- Rapidly aging population affecting fiscal and social policy considerations.
Policy implications and priorities
- Interrelated policy focus needed to:
- Tackle high unemployment.
- Manage fiscal and social implications of a rapidly aging population.
- Support recovery in export sectors affected by the ICT market contraction and declines in traditional exports.
- Emphasis on reforms and measures that address labor market flexibility, public expenditure management, and incentives for supply-side recovery (themes reflected in the listed subjects and keywords).