Invest in Finland

Finland is well placed to recover from the downturn

21/01/2009

According to Gurria, Finland’s budget surplus and low level of debt give it a completely different starting point for stimulating the economy in the face of the downturn compared to other countries. Countries like UK and Germany, for example, run large public deficits even during the good years.

Speaking in Helsinki this week, Gurria also noted that Finland’s investment in R&D, its excellent education system and the openness of the economy to investment and trade also contribute to the country’s exceptionally strong position in the face of the downturn.

Gurria believes that Finland already managed to reform its society and economy during the last recession. Gurria visited Finland as part of the 40th anniversary celebrations of Finland’s membership of the OECD.

According to European Commission forecasts, Finland’s GDP will fall by 1.2% in 2009, but will then grow by 1.2% in 2010. The growth forecast for Finland is significantly better than for the rest of the EU, suggesting that Finland will be among the first countries to emerge from the economic downturn. According to the Commission, in 2009 the EU as a whole will suffer a 1.9% fall in GDP, followed by 0.4% growth in 2010.