Finland : 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Finland

Following a deep recession, growth has turned positive again. However, a large output gap remains and the structural decline of key high-productivity sectors (Nokia and paper) weigh on medium-term prospects. As a member of the euro area and with the fiscal deficit and debt close to or above European limits, macroeconomic policy space is limited. The FSAP found that the banking system is well capitalized and profitable, but also highly concentrated and dependent on wholesale funding.