Finland must start paying off its debt before it is to late to bring the situation under control, Petteri Orpo (NCP), the Minister of Finance, said to Bloomberg on Sunday.
“In the 2020s, as the population ages and we replace our fleet of Hornet fighter jets, paying off debt may become impossible without very strong growth and a high employment rate. And then we might actually want to be able to borrow some more when the worst of the ageing-related costs hit us,” he stated to the news agency.
The Finnish government has seen its debt burden all but double over the past decade, as the country’s output struggled to recover from the shock of the financial crisis that erupted in 2007–2008. The output is projected to finally rebound to levels preceding the crisis during the course of this year.
Orpo, however, warns that the current recovery in economic growth may be over soon.
“I have studied enough economics to know that a recession will come at some point,” he explained. “And given how late Finland got swept into the global economic upswing, there’s a risk growth may be short-lived.”
Aleksi Teivainen – HT
Photo: Jussi Nukari – Lehtikuva
Source: Uusi Suomi