1887

2018 OECD Economic Surveys: Finland 2018

image of OECD Economic Surveys: Finland 2018

The Finnish economy is rebounding strongly after almost a decade of lacklustre economic performance. The revival in global growth and investment, coupled with competitiveness gains, is boosting exports. Consumption remains healthy despite slow income growth and both business and residential investment are buoyant. Nevertheless, a rapidly ageing population limits the long-term growth potential and weighs on public finances. Increased mobility of tax bases related to globalisation creates further challenges in raising revenue, while the tax system should also support growth, competitiveness and employment, and maintain its ability to contain income inequality. To ensure steady and inclusive growth, Finland’s employment rate, which is markedly lower than in the other Nordic countries, needs to be lifted. The welfare system has to generate strong work incentives, protect the vulnerable and adapt to a changing world of work. This Survey assesses the respective merits of introducing a universal basic income and streamlining the social benefit system in moving towards these objectives.

SPECIAL FEATURES: TAXATION; WELFARE

English

.

The tax wedge on labour remains high

2016

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error