S&P KEEPS FINLAND’S CREDIT RATING DESPITE FORECAST OF GDP DROP

Credit rating agency S&P Global Ratings has maintained Finland's credit rating at AA+, saying that it views the country's economy as stable despite a forecast of a 4.5 percent GDP drop this year, the Finnish news agency Yle reported on September 5, 2020.

The agency said it expects the Finnish government to continue stimulus spending next year, as the difficult economic situation continues, but to stabilize state debt at less than 40 percent of GDP by 2023.

In its statement, S&P stressed the importance of structural reforms. Finland is struggling to deal with an aging population and the resulting demand for services, combined with a smaller pool of taxpayers.

In 2021, S&P said it expects Finland's GDP to expand by 2.3 percent, followed by two years of growth at 1.4 percent.