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The Government Programme establishes a foundation for strengthening the public finances and the prerequisites for sustainable growth. But unless the means for achieving growth are expanded, even a balance in the public finances will be impossible to maintain. And without sustainable public finances, the operating conditions for households and businesses operate will deteriorate.

Growth in Finland’s economy this year will be close to zero. The declining level of inflation will gradually improve household purchasing power and boost growth in the economy.

A wage-price spiral may occur in which prices and wages rise and ultimately GDP growth slows down.

For households with outstanding loans, interest payments are now taking a larger slice of their income. Savings and a strong labour market have helped households cope with the rise in the cost of living.

Companies do not appear to have sought to benefit from high inflation by increasing their prices and boosting profits.