Economic Bulletin 4/2008

• Economic Bulletin 4/2008
  18.12.2008  |  pdf, 183 Kt

Summary

• The global recession is becoming deeper, more widespread and prolonged. The impact of the extensive stimulatory measures is expected to start showing towards the end of next year at the earliest.
• The outlook in Finland, too, has fast become bleaker since the summer, and economic growth virtually ceased in the autumn. Production probably started falling towards the end of the year. In 2008, GDP growth, at 1½%, will be 1 percentage point slower than previously anticipated, and next year output will fall.
• Employment continued to rise late into 2008. However, early next year unemployment will start growing fast. The decline in labour supply, on the other hand, will bring labour shortages back in a few years' time.
• Slower inflation and tax cuts will boost household purchasing power, but uncertainties related to the future are hampering consumption growth.
• Central government will plunge into a large deficit. The capacity of general government and businesses to withstand a downturn of short duration is essentially relatively good. However, the financial crunch is restricting access to credit.

Language versions

• Suhdannekatsaus 4/2008
  18.12.2008
• Konjunkturöversikt 4/2008
  18.12.2008

Printable version