Finland: Staff Report for the 2000 Article IV Consultation
IMF Staff Country Reports, August 31, 2000
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- Finland: Staff Report for the 2000 Article IV Consultation
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Bibliographic details
- Published: August 31, 2000
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451813159.002
Summary and key findings
- Finland has recovered from the depression of the early 1990s, and is engaged in a new phase of economic expansion.
- Problems remain on the structural front and should be tackled for robust long-term growth.
- The restraint on the growth of public expenditures should be complemented by a significant reduction in the heavy tax burden on labor income.
- The macroeconomic policy stance should be complemented by other measures on the structural front to help expand the effective labor supply and enhance the supply response of the economy.
Policy recommendations
- Complement restraint on the growth of public expenditures with a significant reduction in the heavy tax burden on labor income.
- Implement structural measures to:
- Expand the effective labor supply.
- Enhance the supply response of the economy.
Structural issues and priorities
- Labor: Reduce heavy tax burden on labor income; expand effective labor supply.
- Public finances: Maintain restraint on growth of public expenditures.
- Supply response: Strengthen structural reforms to improve productivity and potential output.
- Other topical areas referenced: banking sector, core inflation, housing market, product market, productivity growth, public finance, social security contributions, stability program, structural surplus, output gap, price index.
Content in this bundle
- Finland: Staff Report for the 2000 Article IV Consultation - ISCR/00/117