Economic Bulletin 1/2010

• Economic Bulletin 1/2010
  23.06.2010  |  pdf, 100 Kt

Summary

• In spite of a weak first quarter this year, the Finnish economy will start growing this year, fuelled especially by domestic demand and exports. GDP growth for 2010 is forecast at 1.5% and at 2.5% for the following two years.
• The world economy has recovered swiftly from the collapse caused by the financial crisis, and growth in world trade is expected to be fast in the next two years. Growth in the euro area will be sluggish though.
• Employment was better than anticipated in the early months of this year, but will continue to decline. The unemployment rate is estimated to climb to 9.5% this year and the employment rate to drop below 68%.
• Private investment will continue to decrease this year, but is forecast to increase in 2011 and 2012. Growth in household income will accelerate this year, as wage and property income will start increasing this year. Once employment starts improving, growth in earned income will further accelerate in 2011 and 2012. Private consumption is predicted to return to a growth path between 2% and 3%.
• Domestic price pressure will be moderate over the projection period. Owing to a rise in import and producer prices, inflation will accelerate to 2½% next year.
• Accelerated economic growth notwithstanding, the deficit in public finances will slide down to 3.2% of GDP. The deficit in central government finances will increase to 5.7% this year, and central government will remain in deficit in 2011 and 2012 too. The need to borrow in central government will be in the range of EUR 8 billion both in 2011 and 2012.

Language versions

• Suhdannekatsaus 1/2010
  23.06.2010
• Konjunkturöversikt 1/2010
  23.06.2010

Printable version