The Finnish economy will shrink by 3.3% this year and recover only gradually, but swift government support has cushioned the shock, making for a smaller output drop than in many other OECD countries, the OECD said in a country survey on Thursday.
“Finland’s GDP shrank by 5% in the first half of 2020, a historic contraction, but among the mildest of OECD countries thanks to targeted confinement measures that limited loss of mobility, and financial support that prevented mass bankruptcies and saved jobs,” the Organisation for Economic Co-operation and Development said.
The organisation expects growth of 2.1% in 2021 and 1.8% in 2022, led by private consumption and exports, while it called for Finland to boost employment and productivity growth to avoid lasting scars from the COVID-19 crisis.
“Finland’s effective management of the pandemic is to be commended. It is now vital to support economic activity and reduce unemployment to pre-crisis levels to avoid lasting social and economic scars,” OECD’s Director of Country Studies Alvaro Pereira, said.
“Increasing the employment rate, particularly among seniors, and boosting productivity through enhancing the supply of skilled workers and reforming regulations that hamper competition, would prevent a long-term erosion in relative living standards,” he added.
Main Photo: file photo EPA-EFE/MAURITZ ANTIN