Bank of Finland/Liikanen: More needs to be done to boost competitiveness and employment and to stabilise public finances

13 December 2012

"The Finnish economy is at a standstill. The economic outlook has clearly deteriorated in recent months", Governor Erkki Liikanen commented today at the unveiling of the Bank of Finland's latest economic forecast.

The slowdown in economic growth is broadly based. In the immediate years ahead, domestic demand will no longer sustain growth, while exports will continue to perform weakly.

"Export prices have fallen relative to import prices. The deterioration in the terms of trade has reduced any room for manoeuvre in pay talks. The coming round of pay agreements must be tailored according to the competitiveness of the open sector", Governor Liikanen stressed.

The long-term sustainability of the public finances cannot be secured without structural measures, including steps to increase the supply of labour.

Full article

Bank of Finland Bulletin 5/2012: Economic outlook

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