People in Finland are turning their backs on saving and have begun spending more than ever before, according to figures from Statistics Finland.
The statistics agency reports that despite the economy’s current poor performance, an unemployment rate of 9.5 per cent and a low growth forecast for next year, households are spending more than they are earning. Between July and September, the savings ratio was at minus 1.3 per cent, compared to plus 1.3 per cent between April and June.
Labour Institute for Economic Research research coordinator Ilpo Suoniemi explained that when the economy goes through a downturn, it is more common for people to start saving their money.
His claims are backed up by figures from Finland’s last major recession in the 1990s, when there was a high ration of savings to disposable income. Meanwhile, in the mid-2000s, when the economy was booming, the savings to disposable income ratio fell considerably.
Going by previous data, people would be more likely to save during troubled times, but the latest figures show the trend is changing. However, on the bright side, the fact Finns seem happy to continue spending suggests that they remain positive about what the future holds.