Finland coping well with ageing problem, says Moody’s

In its annual report on Finland, Moody’s Investors Service says that the country’s top Aaa ratings reflect the government’s strong fiscal position and its commitment to prepare for the challenge of population ageing, which is happening earlier in Finland than in any other EU member state.

“Finland‘s new government has continued the tradition of prudent macroeconomic policymaking, recognizing that the country’s longer-term demographic challenge should be addressed with proactive efforts now, while times are good,” said Moody’s Vice President Kristin Lindow, author of the report.

In May, the new government established a fresh set of central government spending ceilings for its four-year term in order to support its ambitious labour supply, infrastructure, and environmental goals. Lindow said that restrained government spending has helped to generate consistent fiscal surpluses and sharply reduced government debt ratios over the past decade, providing more breathing room to cope with the spending pressures ahead.

“Finland‘s strong economic growth and healthy external and government finances are the product of adaptability and pragmatism, traits that reflect an ingrained orientation towards consensus politics,” said Lindow. “As a consequence, Finland is currently in a far stronger financial position when compared to the Eurozone as a whole.”