Finland: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland
IMF Staff Country Reports, December 13, 2017
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- Finland: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland
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Bibliographic details
- Published: December 13, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484332498.002
Summary findings
- Economic growth has picked up considerably, broadening to exports and equipment investment.
- The current account is back to surplus.
- The economic recovery is expected to remain strong in the near term.
- Potential growth is constrained by labor market rigidities and aging.
- Better-than-expected fiscal outcomes in 2016 are projected to continue in 2017.
- The public finances face long-term challenges from a declining working age population and escalating age-related spending.
- Avoiding a procyclical fiscal stance would help rebuild buffers over the medium term.
Quantitative outlook and key statistics
- IMF growth projections: 2.8 percent in 2017 and 2.3 percent in 2018.
- Pages: 72
- Volume: 2017
- Issue: 370
- Series: Country Report No. 2017/370
- DOI: https://doi.org/10.5089/9781484332498.002
- Stock No: 1FINEA2017005
- ISBN: 9781484332498
- ISSN: 1934-7685
Constraints and risks identified
- Labor market rigidities that constrain potential growth.
- Aging population leading to a declining working age population and escalating age-related spending.
- Risk of procyclical fiscal policy undermining the rebuilding of buffers.
Policy implications and recommendations
- Maintain a non-procyclical fiscal stance to rebuild fiscal buffers over the medium term.
- Address labor market rigidities and consider reforms to mitigate constraints on potential growth.
- Prepare for long-term fiscal pressures from demographic change and rising age-related spending.
International Monetary Fund. "Finland: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland."
Content in this bundle
- Country Report