The economic outlook for the euro area has deteriorated rapidly. The impact of Brexit on Europe as a whole is hard to predict. Another factor overshadowing the global economy is the trade dispute between the USA and China.

A review of the ECB’s monetary policy strategy is due in light of the latest economic research and the changed operating environment.

Finnish growth will continue, but at a slower pace than in recent years. There is no returning to the growth rate that preceded the financial crisis.

The euro area’s monetary policy stance is conducive to economic growth and employment in Finland.

The fastest stage of growth in the euro area looks to have passed, but momentum remains strong. Uncertainty is being fuelled by protectionism and Italy’s domestic economic policy.

In times of uncertainty, prudence is justified in the normalisation of monetary policy.

Open and transparent communication is a win-win situation for monetary policy. It helps the private sector make better economic decisions and allows the central bank to achieve its price stability objective more efficiently.

Global demand, improved competitiveness and favourable financing conditions will support growth. GDP growth forecasts for 2018–2020 stand at 2,9%, 2,2%, and 1,7%. Inflation will remain close to 1% over the years 2018–2019 before gathering pace and reaching 1.5% in 2020.