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Finland The GDP per capita gap relative to the upper half of OECD countries is narrowing anew, as growth is picking up strongly thanks to a favourable global environment and the effect of structural reforms. Income inequality is low by OECD standards and has been relatively stable over recent years. Greenhouse gas emissions are declining and the share of renewable energy is increasing. The reform of unemployment benefits addressed the priority through shortening the duration of unemployment benefits and stricter conditionality. Progress on competition is substantial, with an easing of restrictions applying to large retail units from spring 2017 – making this no longer a priority – and a gradual opening to competition of new segments of the transport sector starting 2018. A health care and social services reform is underway continuing the provision of high-quality services at a reasonable cost to an ageing population. The employment rate is much lower than in the other Nordic countries, calling for measures on a wide front. The welfare system needs to be reformed, to enhance work incentives, while continuing to protect the vulnerable. Reforming parental leave and the home-care allowance would encourage women's labour market participation, with a positive impact on output and gender equality. Further reforms to spur competition, notably in transport and construction, would lift productivity. The tax structure should become more growth and environmentally friendly. Growth performance, inequality and environment indicators: Finland A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio
2002-08 2.7 1.0 0.2 0.5 0.3 1.7 0.2 1.4 0.0
2012-18 0.8 0.3 0.1 0.1 0.1 0.6 0.1 0.6 -0.1
Level
Annual variation (percentage points)
2017 26.6 (31.7)*
2013-17 0.1 (0)*
9.5 (7.6)*
0 (0)*
2016 5.8 (10.9)* 0.1 (0.3)* 0.1
Average of levels 2010-16 6.3 (11.3)* 0.2 (0.3)* 0.2
C. The gap in GDP per capita is narrowing again Gap to the upper half of OECD countries5 Per cent 5
GDP per capita
GDP per hour worked 0
-5
B. Inequality and environment
Gini coefficient3 Share of national disposable income held by the poorest 20%
GHG emissions per capita4 (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)
-10
-15
-20
-25
Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933954876