Article search

Recent data on the state of the euro area economy are downbeat. The economic development of the euro area rests increasingly on services. ECB council decided to keep key interest rates unchanged.

The Finnish economy is recovering from the recession. Inflation is low and an improvement in the purchasing power of households is supporting a recovery in private consumption.

At the turning points of business cycles, economic recovery has often turned out to be faster than forecast. Growth could pick up if consumers’ confidence in the economy and in their own finances were to strengthen more than expected and exports to grow more quickly than forecast.

Finland’s export growth has fallen behind the growth in world trade. The reasons for this include not only the unfavourable structure of Finnish exports, but also the insufficient ability of Finnish companies to export products that stand out from the competition.

The discontinuation of trade with Russia has not had a major impact on Finland’s economy as a whole. The collapse of exports to Russia has not reduced overall exports in the case of many goods, because exports to other countries have increased.

Considerable progress has been made in bringing inflation down to target, especially since September 2023, when interest rates were last raised. Financing conditions have been held tight in order to curb demand and to keep inflation expectations anchored. Interest rates could now be cut.

The Finnish economy is gradually recovering from the recession. Consumer confidence in the economy will steadily improve, which will encourage households to spend more. When the economy picks up, jobs will also be created.

The Finnish economy is recovering from the recession. The move out of recession will be slow, and the output of the Finnish economy in 2024 will in fact be below the level of the previous year.

The regulatory and supervisory tightening since the global financial crisis has protected banks from new crises. Research findings indicate that the benefits achieved through regulation and macroprudential policy have exceeded the disbenefits.

The capital position of Finland’s banking sector is expected to strengthen in the immediate years ahead, provided that interest rates and the economy develop in line with forecasts. In a very severe economic crisis, the capital position would weaken significantly but would still remain adequate.

The regulatory and supervisory tightening since the global financial crisis has protected banks from new crises. Research findings indicate that the benefits achieved through regulation and macroprudential policy have exceeded the disbenefits.

The resilience of Finland’s financial system has remained robust. Changes in financial regulation should take account of anticipated developments in the operating environment so that we are not simply fighting old crises.

Higher interest rates have brought Finland’s housing market to a halt. If interest rates are cut and the economy recovers, this will ease debt servicing for households and businesses and strengthen the housing market. There would also be fewer risks to financial stability in Finland.

Russia’s future growth potential and living conditions are eroded by government spending and investment focused on war-related production and infrastructure.

The anchoring of expectations and the moderation of energy and food inflation are contributing to reducing the rate of inflation. The tight labour market and the rise in wages to compensate for higher prices are nevertheless still keeping inflation above the 2% target.

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.

The Finnish economy is still in recession. The recession has reached its lowest point, and a gradual recovery is expected to begin towards the end of 2024.

The instability seen in crypto-asset markets has had very little effect on the global financial system, but the growing and partially hidden linkages between markets are a cause for concern.

This Saturday 24 February 2024 marks the second anniversary of Russia’s unprovoked invasion of Ukraine. Along with the human suffering and displacement, war has scarred Ukraine’s economy.

The Finnish economy is in recession. It is also expected to remain weak in 2024. Inflation in Finland has nevertheless fallen, as anticipated, and the purchasing power of households has strengthened.