Finland's debt grew 3.2 billion last year, revised data shows

Finland's public deficit and debt relative to gross domestic product (GDP) grew in 2019, according to the revised data reported by the Finnish statistical office to Eurostat.

However, the final deficit was 1%, clearly below the limit value stated in the European Union's stability and growth pact (3%). General government's gross debt was 59.3%, slightly under the EU's reference value (60%).

Source: Statistics Finland.

According to the revised data, in 2019 general government deficit, or net borrowing according to national accounts, was 2.3 billion euros. The financial position of general government weakened by around 300 million euros from the year before.

The financial position of local government weakened most, by around 700 million euros. This was particularly due to considerable growth in the sector’s consumption expenditure and investments. In 2019, local government sector deficit, or net borrowing, was 2.7 billion euros.

The deficit of central government stood at 2.9 billion euros in 2019, practically the same as one year before.

Debt amounted 142.5 billion

Consolidated general government gross debt (EDP debt) amounted to 142.5 billion euros at the end of 2019. The debt grew by 3.2 billion euros in 2019. Central government debt grew by 1.4 billion and local government debt grew by 2.9 billion. The debt of social security funds decreased by 0.9 billion euros.

The increase in consolidated items between general government by 244 million euros contributed to the debt of the entire general government sector growing by said 3.2 billion euros in 2019.

The EDP debt describes general government’s debt to the other sectors of the economy and to the rest of the world, and its development is influenced by changes in both the unconsolidated gross debt and the internal general government debt.