Euro crisis a threat to Finnish economy, IMF cautions

The eurozone crisis may jeopardise the stability of the Finnish economy, the International Monetary Fund (IMF) cautions in a report published on Friday. A small, open economy with deep-rooted economic interdependencies is vulnerable to the eurozone economic turbulence, the IMF remarks. Yet, the IMF believes that the growth rate of the Finnish economy will recover slightly from the current 0.6 per cent to 1.4 per cent in 2013. However, Finland’s ageing population means that the country must prepare for soaring health and elderly care costs. Elsewhere, the IMF commends Finland for its efforts to maintain both internal and external balance, but highlights the need for a labour market reform and measures to promote production.