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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How will the trade war hit the economy?
Import tariffs imposed by the United States would weaken growth everywhere and it seems there would be no economic winners. A trade war could even lead to businesses postponing investments and growth in the economy slowing down significantly.
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Fiscal policy and debt sustainability in the euro area since the COVID-19 pandemic and energy crisis
The revised EU fiscal rules aim to improve primary balances and consequently strengthen the debt sustainability of EU Member States.The sustainability of government debt levels depends on the size of the interest rate-growth differential and primary balances.
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Corona crisis has increased the risk of stagnation in the euro area
Is the euro area drifting into a liquidity trap (a combination of low interest rates and low inflation) as a consequence of the corona crisis? There is a heightened risk of this, but the policy measures taken are preventing negative trends.
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The trade war has significantly weakened the global economy
According to the Bank of Finland’s model simulations, the tariff rises already introduced will serve to slow global growth by 0.7 of a percentage point.
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Alternative scenarios linked to the global impact of US fiscal and trade policies
The Bank of Finland has calculated alternative scenarios on the effects of risks to the global economy. In these scenarios, global growth weakens more abruptly than currently forecast.