Sustainability of Finland’s public finances
Kivistö, Jarkko (10.01.2019)
Volyymi
92Numero
5/2018Julkaisija
Bank of Finland
2019
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201901281052Tiivistelmä
Finland’s general government debt grew rapidly after the financial crisis, almost doubling its volume relative to GDP. Even though the debt-to-GDP ratio has begun to decline, the rise in public expenditure stemming from population ageing over the next decades threatens to reverse this development. The Bank of Finland’s autumn 2018 estimate of the sustainability gap in Finland’s public finances is about 3% relative to GDP. Although the fiscal position is more comfortable now than at the time of the previous estimate, the long-term outlook for the public finances remains weaker.