Economists think Finland will withstand coronavirus crisis

A group of economists, commissioned by the government to map out a roadmap of the economic impact of COVID-19, on Friday signalled confidence in the ability of Finland to cope with the situation, reported news agency Xinhua.

Talking at a press conference, professor Vesa Vihriälä, who leads the group, noted that Finland has so far been able to provide more direct assistance to enterprises than most Western European countries.

"The Finnish unemployment benefit system made it possible to focus on helping the businesses instead of helping the people," Vihriälä said.

The professor said the group was optimistic about the ability of Finnish society to take the required decisions. "Finland is a functioning society," he said. "There is basic confidence, citizens trust officials and trust each."

The group noted in their report they no longer believe in a fast recovery and envisage a 9-percent decline in the Finnish GDP this year. They suggested extensive recovery boost of at least two percent of the GDP, followed by adaptation and austerity measures.

From 2023 onwards, Finnish public economy would have to be stabilized to keep the ratio of public debt to GDP under 90 percent, said the report. The economists described the austerity measures as a "painful package," estimating that the need to adapt would be 3-4 percent in relation to the GDP.