Finland’s economic situation remains difficult According to the forecast, Finland’s economic growth will be slow and well behind that of the euro area. Foreign trade is not recovering as expected, and growth will continue to depend on domestic demand. There will be no significant improvement in the public finances. Share Email Twitter Facebook Linkedin Google+
A brief history of Finland’s foreign trade Traditional export sectors still the main pillars of foreign trade. Viewed historically, factors that have usually led to a speedy recovery of exports, are now lacking. Share Email Twitter Facebook Linkedin Google+
Finland is greying – will this weaken the effectiveness of monetary policy? The ageing households spend less of any additional income on consumption than the young. Population ageing may weaken the impact of interest rate changes on the economy. Share Email Twitter Facebook Linkedin Google+
Downside risks to the forecast remain The international economic situation, Finland’s problems with competitiveness and the uncertainty surrounding economic policy could, according to the forecast’s risk assessment, mean a slower pace of investment and export recovery. Share Email Twitter Facebook Linkedin Google+
Weaker outlook for emerging economies Global economic and trade growth in the immediate future will be slower than previously forecast. The Russian economy is contracting, and in China, too, the pace of growth has slowed. Share Email Twitter Facebook Linkedin Google+
Public finance impact of immigration will depend on employment outcomes Immigration will bring about a more favourable age structure, as the vast majority of immigrants are young adults. The impact on the public finances will depend on how successful immigrants are in finding work. Share Email Twitter Facebook Linkedin Google+
Rapid debt accumulation to continue According to the Bank of Finland’s assessment of the country’s public finances, the growth in public debt is a cause for concern. Finland’s long-term outlook for growth is weak, and expenditure is increasing apace. Share Email Twitter Facebook Linkedin Google+
The most expensive country in the euro area Since the financial crisis, consumer prices in Finland have been rising faster than in the euro area on average until recent months. Share Email Twitter Facebook Linkedin Google+
What if exports don’t recover in the years ahead? The alternative scenario assesses developments in the Finnish economy if exports turn out to be much weaker than in the forecast baseline. Share Email Twitter Facebook Linkedin Google+