COPENHAGEN: The International Monetary Fund (IMF) is urging Finland to take further action to balance general government finances and thus bring down budget deficits, the fund said in a report about the Finnish economy on Tuesday.
While the Finnish economy recovered rapidly from the pandemic, Russia’s invasion of Ukraine has caused high inflation and rising interest rates, which are weighing on household purchasing power, the IMF said in a statement.
Current policy measures fall short of reducing the government’s fiscal deficit, the IMF said, pointing to the need for additional measures to close the gap.
More policy rate hike likely if price pressures reemerge, IMF told
The Bank of Finland in September said the country’s economic downturn would last longer than expected, driven by weaker export demand and a rapid slowdown in construction activity in the face of high interest rates.
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