According to its estimates, the turnaround could be achieved in part with better targeted energy support measures.
“This should be followed by a gradual but well-defined and well-communicated medium-term stabilization plan based on the measures identified in comprehensive spending and tax reviews.” final statement reads. “Structural reforms that boost long-term growth remain a priority, including changes to the collective bargaining system that would facilitate adjustment to disruptions and maintain sufficient coordination to safeguard competitiveness.”
Eurostat has published preliminary data, according to which consumer prices in Finland rose by 8.3 percent in October. According to the IMF, inflation is expected to be around seven percent in 2022 and 4.5 percent in 2023.
The inflationary environment, on the other hand, is predicted to slow economic growth in the near future.
“The mission expects growth to be close to zero next year, followed by a slow recovery and a return to potential growth of just over one percent,” the IMF said. “Higher energy prices (which affect inflation) and increased interest rates have already undermined the purchasing power and confidence of households, but the full impact of consumption and the housing market is estimated to be visible only in the first half of next year in the form of mortgage interest rates. will be reset more completely, fixed-price energy contracts will end more and more often, and savings buffers will slowly run out.”
Marin responded to the criticism presented in the parliament building on Thursday: “If we compare with many other countries that spent money during the pandemic or energy crisis, I would say that Finland has invested in society quite moderately,” he said. quoted saying Helsingin sanomat newspaper.
Saarikko considered that the government has made mostly successful fiscal policy decisions, but emphasized that crises must not be allowed to overshadow the fundamental problems of the Finnish economy.
“I have stuck to the principle that next year’s anti-inflation measures should be temporary and precisely targeted. But it is clear that these crises must not overshadow the permanent problems in the Finnish economy, he said at the press conference and emphasized, among other things, the aging of the population, the growing demand for services and the development of productivity.
“This means that we cannot continue the same kind and scope of financial support that we gave to households, municipalities and companies during the pandemic during the current and possible future crises,” Saarikko added.
He emphasized that the measures to support citizens to cope with rising energy prices this winter are temporary and aimed exclusively at those who really need support.
Aleksi Teivainen โ HT
Source: The Nordic Page