Prime Minister Petteri Orpo on Saturday termed the downgrading of Finland´s credit rating by Fitch as a serious matter but said that it was not surprising.
“The downgrading of credit rating is a serious matter. The result was not surprising,” Orpo wrote in a post on his social media platform X in Finnish.
He also said that the government has done a lot to overcome the situation, but the economic situation and growth became weaker than expected.
He also said that the government will discuss the issue in the budget session to take necessary measures in this regard.
Earlier on Friday, credit rating agency Fitch lowered the rating of Finland’s central government debt by one grade from AA+ to AA.
Fitch justified its decision by noting that Finland’s general government debt-to-GDP ratio is high and is continuing to grow. Finland’s general government deficit is also set to remain high.
Finland's high government debt remains on an upward trajectory, and the agency does not anticipate sufficient fiscal consolidation to stabilise debt over the medium term.
It expects the general government debt ratio to reach 86.3% of GDP in 2025, up from 82.1% in 2024 and far above the estimated 'AA' median of 49.4%, continuing to rise and surpassing 90% by 2029.
- Finland
- Credit rating
- PM
Source: www.dailyfinland.fi
