HELSINKI: Finnish economy is gaining momentum after a long period of sluggish performance, driven by a strong revival in exports and renewed competitiveness. Further reforms will be needed to boost employment, stabilize public finances and ensure that high levels of well-being are maintained for future generations, according to a new report from the OECD.
The latest OECD Economic Survey of Finland says high business and consumer confidence are underpinning the current broad-based economic recovery. The survey recommends reforming taxation to support future growth and redesigning social welfare policies to serve the dual goals of boosting employment and ensuring better opportunities for the most vulnerable members of society, Modern Diplomacy reported.
The survey, presented in Helsinki by OECD Deputy Secretary-General Mari Kiviniemi and Finland’s Finance Minister Petteri Orpo, projects growth around 2.5% in 2018. It identifies priorities for future public policy action, including further reforms to ensure financial stability and the long-term sustainability of public finances, in the context of population ageing.
“The Finnish economy has regained its growth momentum and Finland is once again showing its resilience,” Kiviniemi said. “The strong recovery owes much to the efforts of workers, who have accepted sacrifices to restore price competitiveness, companies, which have restructured and innovated to meet evolving customer needs, and the government, which has accompanied these efforts through ambitious reforms.”
Reforms to the tax and benefit system should support growth, competitiveness and employment, while maintaining the ability to contain income inequality and preserving the quality of social services.
