Finns are becoming increasingly indebted as their savings rate continues to be negative, the recent economic review by the Ministry of Finance indicates. High household indebtedness reflects on the national economy. Nordea’s Private Economist Olli Kärkkäinen says he is concerned if the negative savings rates continue in the long term and notes that some forecasts indicate that private consumption is growing faster than purchasing power. This means that the growth in consumption is based on debt, which is not sustainable in the long term. He is, however, glad that the rate of indebtedness has slowed down.
Journalist: Tiina Saari
Main source: Nordea’s Private Economist Olli Kärkkäinen