Editorial : Finnish households’ purchasing power is improving - The economy’s long-term challenges are acute

Abstract

The Bank of Finland’s June forecast shows that the Finnish economy will shrink this year. Growth is being restrained across a broad front by the combination of inflation, which is slowing but still too high, tighter monetary policy and weak export demand. The recession nevertheless looks like being short-lived, and lower inflation will gradually create more favourable conditions for growth in the economy.