Finland’s period of rapid economic growth has come to an end, according to the Bank of Finland, which said its economic projections have pointed to the need for measures to be taken to respond to economic downturns, while also shielding the Finnish economy from any market volatility that stems from climate change.
The Finnish economy is projected to grow by 2.7% this year, but will, in fact, decelerate to 1.9% in 2019 and 1.7% in 2020, due to weakening exports as a result of the lack of global economic growth.
Projections by the Bank of Finland are more optimistic than the government projections for 2.5% growth in 2018 and 1.5% in 2019.
The Governor of the Bank of Finland, Olli Rehn, called on Wednesday for a Keynesian approach, which entails the creation of a fiscal buffer during periods of higher growth, to pursue fiscal expansion during economic downturns. “
This is the right time to strengthen buffers on public finances and gear up for the next downturn,” said the former European Commissioner for Economic and Monetary Affairs. Rhen said he did not want to criticise the government, but noted that their fiscal policy was not as robust as he had hoped.