The coronavirus disrupted households’ plans in one fell swoop
The article examines the effects of the coronavirus crisis on Finnish private consumption in 2020.
Private consumption fell by more than 10 percent between March and June — more than at any time in the 2000s — but less than had been feared. This is explained by households’ strong financial situation, consumers’ ability to find new objects of consumption, and the fact that housing and food — the largest components of consumption — changed very little. As the epidemic subsided in the summer, pent-up demand was released rapidly.
In the autumn, uncertainty has returned. Precautionary saving is growing and consumption of services will not fully recover until the pandemic recedes. Possible lasting changes from the crisis include the growing prevalence of remote work and the resulting reduction in commuting, as well as possible changes in demand for restaurant and tourism services. (AI translation)
