## Finland: 2022 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Finland

_IMF Staff Country Reports, January 23, 2023_

## Source details

**Canonical URL:** [Finland: 2022 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Finland](https://www.imf.org/en/publications/cr/issues/2023/01/20/finland-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-528423)

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## Bibliographic details
- Published: January 23, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400232114.002

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### Economic outlook and near-term risks
- Economy recovered swiftly from the pandemic.
- Russia’s war in Ukraine has worsened the outlook through trade exposures and increases in energy prices.
- High inflation and rising interest rates are weighing on household purchasing power.

### Structural challenges and medium-term constraints
- Long-standing structural challenges persist: adverse demographics and low productivity growth.
- Further measures to boost employment and productivity are key to growth and fiscal sustainability.

### Financial sector resilience and vulnerabilities
- Finland has a large financial system; banks are well capitalized.
- Vulnerabilities identified:
  - Susceptibility to liquidity shocks.
  - Exposure to credit risks from other Nordic countries.
  - High household debt raising systemic vulnerability.
- Recommendation: Strengthen liquidity buffers.

### Macroprudential and regulatory policy recommendations
- When circumstances allow:
  - Re-instate systemic buffers.
  - Enhance cyclical tools by introducing a positive neutral rate for the countercyclical capital buffer.
- Legislative action: Enact a debt-to-income cap to address household finance vulnerabilities.

### Labor market and wage-setting reforms
- Advance labor market reforms to boost employment and productivity.
- Make collective wage bargaining more flexible while strengthening the coordination mechanism to support adjustment to shocks.

*International Monetary Fund, January 23, 2023.*

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_Source: https://www.imf.org/en/publications/cr/issues/2023/01/20/finland-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-528423_