Output continued to decline in Finland over the first half of the year, as the collapse in exports deepened. However, a recovery should get underway by the end of 2009 with a bounce in exports from the current very low levels and substantial restocking. Harmonised inflation has remained above the euro area average due to large negotiated wage increases. The unemployment rate has climbed sharply, and is expected to continue to rise, magnified by significant labour market rigidities.

Economic conditions in Finland deteriorated abruptly through the winter. Falling exports explain the major part of the decline in GDP although destocking, household consumption and dwelling investment also contributed.

The global economic crisis is affecting families and communities across the planet. With regions bearing the brunt of the crisis, affecting businesses, jobs and people generally, regional policies are very much part of the solution.

Economic activity has slowed substantially, mainly due to a decline in investment. Output growth is projected to be subdued in 2009, before recovering during 2010. Unemployment is likely to drift up during 2009, but should stabilise in 2010. Lower commodity prices and growing slack in the economy should bring down inflation from the current high rate.

The number of broadband subscribers in the OECD rose to 235 million by December 2007, up 18% from 200 million subscribers in December 2006.This growth increased broadband penetration rates to 20 subscriptions per 100 inhabitants, up from 16.9 in December 2006.

Transport is a major contributor to CO2 emissions. But can policymakers make a difference? We asked Anu Vehviläinen, Finland’s minister for transport, and chair of the first International Transport Forum in Leipzig in May 2008.

Finland took the number one spot in the OECD’s PISA 2006 survey, a comprehensive and much-quoted international yardstick of secondary school student performance. Finland was followed by Hong Kong- China, Canada, Chinese Taipei, Estonia, Japan and New Zealand. Australia, the Netherlands, Korea, Germany, the UK, the Czech Republic, Switzerland, Austria, Belgium and Ireland also scored above the OECD average. Mexico finished last among OECD countries.

Output grew by 5% in 2006, and strong growth has continued into 2007, underpinned by a robust export performance and sustained strength in consumption. While healthy employment growth is projected to continue, leading to a further decline in unemployment, output growth is expected to moderate.