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Purchasing power of Finnish wage earners is rising fast

13/01/2009

Even in the middle of the economic downturn, the purchasing power of middle-income wage earners in Finland is set to rise at a record pace in 2009.

According to the Taxpayers' Association of Finland, the wage earners’ purchasing power will be significantly higher than last year thanks to falling inflation, lower taxation and wage increases.

The Taxpayers' Association has calculated that if the inflation rate is 1.5% this year, the wage earners’ purchasing power will increase by 4.6% – compared to just 1.5% last year. Last month the Ministry of Finance estimated that inflation will be around 1% in 2009.

The Finnish government is set to reduce taxation by EUR 870 million this year and will also hold back higher taxation resulting from increased income levels. The government is also expected to take other measures boost demand and minimize the impact of the global downturn.

The average salary in Finland is about EUR 2,900.

 

Sources: YLE Uutiset and Taloussanomat

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