Finland: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland
IMF Staff Country Reports, January 31, 2022
Source details
- Canonical URL
- Finland: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland
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Bibliographic details
- Published: January 31, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400201011.002
Overview
- 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.
Economic performance (2020–2021)
- 2020: Relatively mild economic contraction (no numeric GDP contraction given in the source).
- 2021: Swift recovery following the 2020 contraction.
- Policy: Strong policy support underpinned the mild contraction and swift recovery.
Medium-term outlook and constraints
- Growth prospects: Less strong in the medium term.
- Key constraints identified:
- Adverse demographics.
- Low productivity growth.
- Note: These adverse trends precede the pandemic.
Public debt and fiscal stance
- Public debt: Increased due to pandemic-related support.
- Medium-term trajectory: Public debt will remain on a rising trajectory in the medium term.
- Main driver: Largely reflecting permanent spending increases.
Subjects and keywords (as listed)
- Subjects: COVID-19, Employment, Financial institutions, Health, International organization, Labor, Labor markets, Loans, Monetary policy, Public debt
- Keywords: COVID-19, currency of Finland, Employment, exchange arrangement, Global, Labor markets, liability positions vis-à-vis nonresident, Loans, money market rate, potential GDP, transparency policy
Content in this bundle
- 1finea2022001