Finland: Output to moderate
Output grew by 5% in 2006, and strong growth has continued into 2007, underpinned by a robust export performance and sustained strength in consumption. While healthy employment growth is projected to continue, leading to a further decline in unemployment, output growth is expected to moderate.
To address the significant imbalances emerging in the labour market, more needs to be done to better match those out of work with the growing number of unfilled vacancies. The government should consider tightening fiscal policy to offset the effects of the large wage increases agreed in the current round of wage negotiations.
No. 264/265, December 2007-January 2008
• OECD Economic Outlook No. 82, December 2007
• Visit www.oecd.org/finland
• All OECD Observer articles on Finland