Editorial : Bar raised for economic policy – demographic trend and public debt weigh on national economy

Abstract

According to the Bank of Finland’s new forecast, the COVID crisis will not cause a substantial long-term drop in the Finland’s GDP. This is clearly good news. Generally, when the economy returns to growth following a deep economic crisis, output does not return to the pre-crisis trend, but to a lower trajectory. This time we expect the outcome will be better. In this respect, the extensive, strong economic policy response to the crisis can be considered a success. The public finances will, however, be left with a long-term scar.