IMF urges Finland to tighten budget to eliminate deficit by 2035

The recommendation is to tighten the budget by 0.5 percent of GDP per year from 2027, with the aim of eliminating the country’s large budget deficit by 2035, in line with IMF recommendations.

According to IMF experts, several years of spending cuts are needed, along with revenue increases that stimulate growth.

Finland’s economy has recovered this year, according to the IMF, but unemployment remains high and risks becoming entrenched. The report also warns that youth unemployment threatens skills development and employment trends in the long term.