Rising import prices are hitting the real economy
The euro area imports a major share of the energy it consumes. Research shows that abrupt changes in import prices lead to rapid increases in consumer prices but affect the real economy more slowly.
Latest articles and blogs
-
Alternative scenario: Households use their savings more quickly than anticipated
If households spend the savings accumulated during the pandemic quickly, economic growth could be much stronger than estimated in the forecast for the Finnish economy for 2021–2023.
Public finances carried households and businesses through the COVID crisis
The financial position of households and businesses has on average remained good through the crisis, with the exception of the service industries directly impacted by COVID-19. Support measures have weakened the public finances.
A debt-to-income cap would dampen economic fluctuations
Based on an analysis by the Bank of Finland, the introduction of a debt-to-income cap would have only a moderate impact on long-term economic growth. A debt-to-income cap could dampen economic fluctuations when compared with the current loan-to-value cap.