Operating environment

Half-year Financial Report 16/2021, 19 August 2021

The following outlook information is based on materials published by the Confederation of Finnish Industries EK and Statistics Finland.

The world economy is expected to recover from the coronavirus pandemic at a rate of approximately six percent in 2021, albeit at highly differing rates around the world and in different sectors. Despite the quick recovery, there are also signs of the world economy slowing down. Economic development involves uncertainties due, in particular, to virus variants and possibly tighter fiscal policy.

The economic outlook for Finland improved during the summer, but there is still uncertainty in Finland as well and clear differences between industries continue to exist. The confidence indicator for the retail trade decreased in July but was still above the long-term average. Sales grew in the summer. However, while sales are still estimated to grow in the next few months, the expectations are on a slightly lower level. The July figures for consumer confidence continued to be on a strong level. Estimates of the current state of personal finances were a an all-time high and expectations for both personal and Finland’s economy were on a good level.

(Confederation of Finnish Industries EK: Business Tendency Survey, July 2021; Confidence Indicators, July 2021. Statistics Finland: Consumer Confidence 2021, July).

The working-day-adjusted turnover of Finnish retail trade in June grew by 5.8 percent on the previous year, and the volume of sales was up by 4.3 percent. The cumulative working-dayadjusted turnover of retail trade in the first half of the year rose by 6.3 percent and the volume of sales increased by 5.6 percent. (Statistics Finland: Turnover of Trade, June 2021).