Latest articles and blogs
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Productivity and energy costs are weaknesses in euro area competitiveness
Economic growth in the euro area has been undermined in recent years by the erosion of competitiveness in relation to the United States and China. This has been mainly attributable to the subdued growth in labour productivity and the fact that energy has remained significantly more expensive than in competitor countries.
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Finnish economy’s long-term growth outlook squeezed by a shrinking working-age population and weak productivity
The long-term forecasting scenarios for economic growth combine the projections for human capital and fixed capital.
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Corporate profits not indicating changes in firms’ pricing strategies
Companies do not appear to have sought to benefit from high inflation by increasing their prices and boosting profits.
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Cost competitiveness is key in replacing lost trade with Russia
Finland’s cost competitiveness has strengthened in recent years, but it has yet to fully recover to the level attained before the financial crisis. Improving cost competitiveness is especially important now, when companies are searching for new markets to replace lost trade with Russia.
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Short-term economic outlook has deteriorated drastically in Finland, Sweden and Germany
The Finnish, Swedish and German economies weakened almost simultaneously in March. The latest indicators show signs of a pick-up, but uncertainty will slow the recovery.
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Do wages contribute to flexibility and competitiveness in a monetary union?
The method by which agreement is reached on wages in the Member States participating in EMU has a particular significance for employment and growth. Optimal wage formation defines the development of competitiveness.
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Finland’s long-term growth prospects moderate
The economy has recovered from the recession following the financial crisis, but growth is expected to remain below its pre-crisis level, averaging 1.5% per annum over 2026–2040.
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A new method to measure structural unemployment via labour market flows
According to a new structural unemployment indicator based on labour market flows developed by the Bank of Finland, unemployment in Finland is currently close to its structural level.
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Estimation of structural unemployment important, but complicated
In both the United States and the euro area, economic growth has picked up and the labour market has strengthened without the build-up of significant wage and price pressures. This raises the question as to how far the economy can still be from its potential output.
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Long-term growth from a productivity and employment perspective
Global trends in international trade and technological advances will shape output and employment structures. Accelerating automation raises concerns over a long-term reduction in work, falling wages and increasing inequality.
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Demographic change reduces labour force and number of employed
Finland’s demographic structure and the age structure of the labour force are changing as the baby-boomers retire. Weak employment among the young has been compensated by a higher employment rate among older cohorts.