Pace of debt growth disquieting

Abstract

The prolonged recession in the Finnish economy has been directly reflected in the public finances, which have posted a deficit for 6 years already. In 2017, the public debt will rise to over 68% of GDP, which is more than double the level recorded in 2008. Given that the longer-term outlook for Finnish economic growth is poor due to the prolonged recession, a dwindling working-age population and industrial restructuring, the upward trend in public debt is disquieting.