Finland cuts debt for the first time in decade
Government debt was previously expected to increase by 1.3 billion euros this year but according to an update by the state treasury it will come down by 0.9 billion euros to 104.9 billion euros. The debt reduction is due to several things, including growth in output and employment, payments to the state from Finnish Export Credit Agency and sales of shares in state-owned companies. Next year, however, the debt is expected to grow again by 1.6 billion euros. While the economy has rebounded and is expected to grow by around 3 percent this year, the country’s employment rate is lagging Nordic peers at 72 percent and GDP growth is seen slowing down next year.
- Reuters -