A new virus variant is disrupting forecasts for next year

Finland’s economic growth in 2021–2022 was stronger than expected, but part of the growth was driven by temporary factors, and demand developments were not as strong as overall output growth suggested. Household consumption and investment fell short of forecasts, and the economic outlook remained uncertain, particularly due to the COVID-19 pandemic and the Omicron variant.

At the same time, inflation accelerated both in Finland and internationally, although the increase in Europe was more moderate than in the United States, where expansionary policy reinforced price pressures. The pandemic demonstrated that the relationship between economic growth and containment measures is complex, and strategic decisions are based not only on economic considerations but also on health-related and ethical factors. (AI translation)

• Publication in Finnish