IMF says Finland needs more structural reforms
Without structural reforms and their solid implementation, economic growth in Finland may remain slow for a longer period, David Hofman, the IMF mission chief for Finland, warned in an interview with Bloomberg. Room to maneuver in fiscal policy was reaching its end now, he said. Meanwhile, the EU Commission said on Tuesday that Finland’s three-year downturn is expected to come to an end this year with the economy forecast to start growing again gradually. Consumption and exports are expected to increase, helped by the euro’s depreciation and lower oil prices, but investment still looks sluggish. The budget deficit is forecast to remain above three percent of GDP in 2015 and 2016. The cep already highlighted last year in its Default Index the urgent need for action in Finland.