HIBAPRESS-RABAT
The fiscal landscape for 2024 is characterised by the government’s concerted efforts to reduce the budget deficit through a combination of spending cuts, selective tax increases and reforms. Despite these measures, the short-term consequence is an expected increase in the debt-to-GDP ratio. The commitment to fiscal prudence is expected to contribute to a partial reduction in the budget deficit, reflecting the government’s determination to maintain financial stability.
Finland’s current account balance is marked by a surplus in goods, but offset by a deficit in services, partly due to the Finns’ penchant for international travel. Despite the persistence of the deficit in services, a reduction in the current account deficit is expected in 2024.
This outlook is supported by expectations of a slight improvement in the goods surplus. In addition, a slight improvement in primary incomes contributes to the anticipated reduction in the current account deficit.
