Radio | News week in plain Finnish | Saturday 28 September 2024

Forecast of the Finnish economy

The topic of the news week is the forecast of the Finnish economy.

The Ministry of Finance published an economic forecast for Finland this week. The forecast shows that the economy is starting to improve.

The financial forecast of the Ministry of Finance is important because the government makes many decisions based on it.

We will now tell you more about the financial forecast of the Ministry of Finance.

Economic growth

The forecast of the Ministry of Finance, or Ministry of Finance, estimates that the Finnish economy has begun to recover from the recession. A recession is a time when economic growth is really slow or the economy shrinks.

VM estimates that economic growth will accelerate next year.

Public finances are not improving as well. The public finances will remain in deficit and the debt of the public finances will increase further.

Export

VM predicts that Finland’s gross domestic product will still decrease this year, even though the economy has started to grow a little. Next year, the gross national product will also start to grow.

Finland’s exports grow as World Trade picks up. Exports grow when the economy grows in the entire euro area.

There is also uncertainty in VM’s forecast. For example, economic problems in China and Germany can slow down export growth.

The Ministry of Finance predicts that people’s purchasing power will improve. Purchasing power improves because inflation, i.e. the rise in prices, slows down, interest rates fall and private consumption increases.

Employment

VM predicts that employment will decrease by more than 10,000 people this year.

Employment will start to improve next year. The growth will continue in the following year as well. The government’s employment measures and immigration increase the workforce and employment grows.

VM predicts that unemployment will start to decrease next year.

The forecast is that in 2026 unemployment will be a little over 7 percent.

Expenditure increases

Many things will increase government spending in the next few years.

For example, more money is spent on interest and defense of the government debt than before.

The costs of purchasing services will also increase because there is a labor shortage in the public sector.

Repeat

The topic of the news week was the forecast of the Finnish economy.

Let’s repeat the most important things.

The Ministry of Finance predicts that the Finnish economy will shrink slightly this year.

Next year, the economy will start to grow. The increase is maybe 2 percent. Exports start to grow and employment starts to improve.

The economic situation will improve because the rise in prices will slow down and interest rates will fall.

This was news week in plain Finnish, see you again. Goodbye!