Economic Bulletin 3/2009

• Economic Bulletin 3/2009
  18.12.2009  |  pdf, 92 Kt

Summary

• The trough of the global recession has been surpassed and economic activity is recovering. However, the rate of growth is expected to remain moderate over the projection period.
• Economic activity in Finland fell sharply both late last year and early this year. The cyclical downturn has now bottomed out, and the economy is settling into a slower path of growth than before.
• GDP will decrease by 7.6% this year. Next year it will grow by 0.7% and will accelerate to around 2½% in 2011.
• The number of employed will decrease by 80,000 people this year and the number of unemployed will increase by over 50,000 people. The unemployment rate will rise to an average of 8½% this year. Job prospects will continue to deteriorate next year and unemployment is expected to rise to an average of 10½%.
• Inflation is anticipated to remain moderate over the next two years. Wage earnings will grow by 4% this year and slightly less in 2010 and 2011.
• The budgetary position in central government will deteriorate very strongly this year and the need to borrow will remain at over EUR 11 billion even in 2011. The deficit in general government finances is forecast to slide to 3½% of GDP next year. It will contract slightly in 2011 though. Local government finances will be weaker this year and are set to remain so next year too, despite very tough local taxation.

Language versions

• Suhdannekatsaus 3/2009
  18.12.2009
• Konjunkturöversikt 3/2009
  18.12.2009

Printable version