Summary:
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.

Summary:
According to Statistics Finland, production in Finland was 3.0% higher in February 2017 than in February 2016, and production in January 2017 3.7% higher than in January 2016. OP’s Chief Economist Reijo Heiskanen pointed out on Twitter on Monday that the Finnish GDP has grown for two consecutive months. Also Nordea’s Chief Economist Aki Kangasharju is more confident than before and says it will interesting to see how far this development will last. He points out that the acceleration of economic growth must stem from investments.

Media:  Iltalehti
Date: 17.4.2017
Journalist: Mika Koskinen
Main source: Nordea’s Chief Economist Aki Kangasharju

Summary:
Nordea has raised its GDP forecast and now expects Finland’s GDP to grow by 1.3% this year and 1.5% next year. According to Nordea’s economists, the outlook of the global economy has improved significantly starting from the end of 2016 and world trade has finally started picking up. Economic growth in Finland will expand from domestic consumption and housing construction to all demand categories, and economist Pasi Sorjonen expects also exports to start supporting growth this year thanks to the improved situation in world trade. Chief Economist Aki Kangasharju points out that the Finland is still facing challenges as labour market negotiations begin in the autumn and the economy demands reforms.

Summary:
Danske Bank estimates that Finland’s GDP will grow by 1.5% this year and next year. Earlier the bank predicted a growth of 1.3%. According to Danske Bank, indicators suggest that economic activity in Finland will continue to be lively. Danske Bank’s Chief Economist Pasi Kuoppamäki says the bank expects optimistic consumers to increase consumption also this year thanks to income tax breaks and improvements in the employment situation. The focus of growth will, however, move from private consumption to export and industrial investments in the future.

Media:  Taloussanomat / Ilta-Sanomat
Date: 21.3.2017
Journalist: –
Main source: Danske Bank’s Chief Economist Pasi Kuoppamäki

Summary:
All EU countries will see economic growth this year and next year, forecasts the European Commission. In Finland, growth will be subdued compared to many other countries, with a growth of 1.2 per cent this year. Economic growth in Finland has for a long time been slower than in many other EU countries. Next year, Finland’s economy is forecast to grow by 1.5 per cent.

Media:  Maaseudun Tulevaisuus (E-edition, PDF)
Date: 15.2.2017
Journalist: Aimo Vainio
Main source: –

Summary:

The European Systematic Risk Board (ESRB) has issued a warning to eight EU countries, including Finland, on the medium-term vulnerability in the housing market. The task of the ESRB, which has the power to issue warnings and make recommendations, is to monitor developments in financial markets and take steps to prevent and limit risks that they believe to be a threat. The ESRB regards Finland’s vulnerability to be its rate of household debt and growing levels of indebtedness – particularly amongst some groups of households. Household debt is currently at a historical peak and Finland’s debt-to-GDP level is above the average for EU countries.

Summary:

The European Commission considers Finland to be one of the countries who are at risk to violate the rules of the Stability and Growth Pact. Minister of Finance Petteri Orpo states that the Commission’s view was expected and that corrective measures will need to be taken in order to put the Finnish economy back on a sustainable track. The EU has also reached an understanding on the Union’s budget for next year. The agreement is in line with Finland’s goals. Finland found it important that the focus of financing reflects current needs better.

Media:  Verkkouutiset / Nykypäivä

Summary:

The Finnish NGO Finnwatch estimates in a report published today that Finland loses annually 430–1,400 million euros in corporate tax revenue because of aggressive tax planning by multinational corporations, writes HS. The amount equals 10–31 percent of Finland’s corporate tax revenue. The OECD has compiled a list of 15 ways to combat aggressive tax planning, and the EU is currently implementing these measures. Finnwatch researcher Henri Telkki says the problem is that, according to the EU’s policies, the phenomenon is tackled with the help of information exchanges by tax authorities.

Media:  Helsingin Sanomat

Date: 15.11.2016

Journalist: Marja Salomaa