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The Finnish economy will see a slow return to growth, but the pace of growth will gradually pick up. Inflation will no longer erode the increase in earnings, and the reduction in interest rates will fuel investment and consumption. The recovery will be overshadowed by uncertainty in the outlook for the global economy.

The decrease in inflationary pressures has already allowed two interest rate cuts this year in the euro area. Growth in the euro area's economy is still fairly subdued and is underpinned mainly by the service sectors, as industrial output continues to be weak.

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.

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.

The economy is performing weakly, and there are a number of reasons for this. Higher prices and interest rates continue to be a strain on household consumption. Investment is low. Residential construction, for example, is on hold. Consolidating Finland’s public finances is more challenging than expected.

Euro area inflation has been too high for too long. The European Central Bank’s interest rate decisions have reduced consumer, business and market expectations of high inflation in the future.

In recent years, with the ECB’s asset purchase programmes and credit granted to banks, the ECB’s deposit facility rate has become the principal policy rate. The gradual reduction in the asset purchase programmes and in the volume of credit have prompted the ECB to review how it will control short-term money market interest rates in the future.

Although the Finnish economy will not grow this year, there will be a return to growth in 2024. Employment continues to be a bright spot in the economy.

Especially households with high debts in relation to their income may come under particluar strain in the near future, as both loan servicing and other daily costs are rising at the same time.

Growth in Finland’s economy will stall temporarily due to Ukraine war and energy crisis. High inflation is weakening consumers’ purchasing power and general confidence in the economy. In the public finances, spending will continue to exceed revenues.

The euro area is under strain due to the energy crisis. The area’s economy will also be unable to rely on world trade to bolster it.

Russia’s war in Ukraine is curbing economic growth worldwide. Finnish households will reduce their consumption of products and services due to uncertainty and rising prices.

Unpredictable events like war and pandemics may threaten the stability of the financial system. The system must be able to function even in stormy conditions.

The Finnish economy is growing at a good pace. Growth is overshadowed in the short term by COVID, and in the long term by factors such as the ageing population.

Inflation, or the rise in the general level of prices, has accelerated due to the rise in commodity prices and the recovery in the economy. Inflation will slow next year. Monetary policy will be used to ensure that inflation remains stable.

The vaccinations will ease the virus situation and at the same time stimulate economic growth. Households will be able to consume more freely once the pandemic eases. The economy is also growing elsewhere around the world and this will boost Finland’s exports.

Cash payments have been on the decline for years now, but the pandemic has accelerated the process. Mastering new payment methods will require financial literacy. Authorities must make sure that new services are secure.

The banks have coped well during the pandemic and have been able to provide credit to businesses and households. Very long loan durations are a cause for concern. New tools are needed to rein in the build-up of debt.

Vaccines bring hope of an end to the COVID-19 crisis, but recovery will be slow. In the immediate years ahead, household consumption will drive the economy, but exports and investment will remain sluggish.