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Consumers’ faith in the economy recovers

The buying power of an average consumer is set to suffer as prices rise but salaries remain largely the same, due to the centralised wage agreement reached Friday. However, one in four Finns believe that the economy is about to take a turn for the better, according to an Yle-commissioned poll.

Grafiikka
Image: Yle uutisgrafiikka

The poll carried out by pollster Taloustutkimus shows that one in four Finns believe that the economy will start to grow this coming winter. Only a third feared a recession, as compared with two thirds two years ago.

Unfortunately economists aren’t quite as hopeful.

“For the time being the signs are very fragile, weak and nascent. So it’s hard to say if we’ll be able to partake in a kind of growth that could happen,” said Jussi Mustonen from the Confederation of Finnish Industries (EK).

Eero Lehto from the Labour Institute for Economic Research is along the same lines with Mustonen. Lehto sees the outlook darkened by continuous consultative talks at big companies, especially those dealing in electronics and machines.

Mustonen notes that Finland is now more dependent on the rest of the world than ever: “This isn’t just about Europe, but above all what’s taking place in the United States and the world economy at large.”

Exports to the rescue

Risto Murto, deputy CEO of Varma pension insurance company, sees slow economic growth on the distant horizon. According to Murto, exports hold the key to growth.

“Demand for exports will lift Finland into growth, and it is difficult to see that Finnish growth figures could be very good until our immediate area starts to grow much faster than now. Next year looks better than this year,” Murto commented.

“The level of growth forecast for next year is not enough for Finland, though. It is not enough to bring Finland speedy growth. We need stronger growth in the Nordic countries, Russia and especially the eurozone,” Murto continued.

Taloustutkimus interviewed more than a thousand work-aged Finns for the poll between 16 and 22 October. The poll carries a +/- three percent margin of error.