Do Finns have the patience?

The Finnish economy has been in a mild recession for fifteen years. Now, there seems to be - perhaps - some light at the end of the tunnel once again. This is because, according to preliminary data from Statistics Finland, the seasonally adjusted gross domestic product (GDP) of Finland grew by 0.4 percent from January-March to April-June.

It remains to be seen whether Finland will finally succeed in returning to a growth trajectory that would also allow for balancing the state budget and, eventually, reducing the country's debt. And in time, also increasing the funds available for public services.

In my view, all this is possible, but it requires what former President Urho Kekkonen emphasized in 1952: patience. However, the situation now is different from back then, as the President at that time was urging taxpayers to finance the industrialization of Northern Finland to exploit the region's rich natural resources.

Now, it is more about having the patience to refrain from new public services - and even reduce existing ones - so that the private sector would dare to invest in the country. This applies to both domestic and foreign investors. And workers, who should be willing to follow job opportunities to where they are available.

Previous thoughts on the same topic:
Balancing the Books
The difficult times for Finland's economy are coming to an end
Why Can't Finland Find Workforce?

Correct minister, ridiculous facts

The Finnish parliamentary elections were held last summer. As a result, the country's government switched from a red-green coalition to a political right-wing one in the summer.

Among the politicians of the previous government, Maria Ohisalo of the Greens first served as the Minister of the Interior and later as the Minister of the Environment and Climate. Therefore, it was interesting to note her criticism of the current government on messaging service X, stating that Finland's ranking had dropped by a whopping 11 places according to the latest Climate Change Performance Index (CCPI) ranking.

The situation became amusing when it was revealed that the former minister had not noticed that CCPI used two-year-old data for statistics, precisely from Maria Ohisalo's ministerial term. In other words, she blamed the current government for her own achievements.

It is clear that Ohisalo made herself appear ridiculous. What is less clear, however, is why she rushed to politicize the new information before verifying its accuracy.

If this behavior was typical for Ohisalo and the previous female-led government, it is no wonder that the previous government term was, especially in terms of the economy, downright catastrophic for Finland. For example, during the four-year period (2019-2022), the state debt increased by a whopping 33 percent, leaving the budget permanently about seven percent in deficit.

Hopefully, the current government will familiarize itself better with the facts before decision-making and succeed in revitalizing Finland's economy to make it comparable again to other Nordic countries.

Previous thoughts on the same topic: Advice to participants of the COP27 climate implementation summit 175 happy winners Minister Maria Ohisalo panicked