Finland public debt exceeds 90% of GDP

Finland's public debt has reached a record high, exceeding 90 percent of its Gross Domestic Product (GDP). According to data from Statistics Finland, the debt-to-GDP ratio rose to 90.3 percent in the second quarter of the year.

This increase marks the first time Finland's debt ratio has risen above the average for the eurozone. The growth has been rapid; five years ago, the ratio stood at approximately 75 percent, whereas the lowest level recorded in the 2000s was 30.7 percent in the third quarter of 2008.

The primary driver of this increase is government debt, which grew by 4.0 billion euros in the second quarter, reaching a total of 220.2 billion euros. Statistics Finland notes that the surge in long-term debt papers has been a key factor, with the stock of these papers increasing from approximately 60 billion euros in the early 2010s to over 175 billion euros today.

While government debt has risen sharply, the debt of the local government sector, including municipalities and welfare areas, increased by 0.6 billion euros during the same period. Conversely, the debt of social security funds decreased by 0.1 billion euros.