A customer withdraws money from an Otto ATM in Helsinki. LEHTIKUVA
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Financial confidence among Finns has plummeted to an all-time low in 2024, widening the gap between Finland and its Nordic neighbors, according to a recent survey by Danske Bank.
The Financial Peace of Mind Index, which aggregates responses to nine questions about financial confidence, has dropped by 0.1 points in Finland to a score of 5.9. In contrast, the index rose by 0.1 to 0.2 points in other Nordic countries.
The survey indicates that Finns now have the lowest financial peace of mind in the history of the survey.
Denmark continues to lead the index with a score of 6.6, followed by Norway at 6.3, and Sweden at 6.1. Last year, Sweden was tied with Finland at the bottom, but Finland has since fallen further behind. The index ranges from one to ten.
While financial concerns are easing in other Nordic countries, Finns are increasingly worried about their economic situation. The survey period coincided with the Finnish government’s budget framework session, which included extensive discussions on public finance adjustments, spending cuts, and tax increases.
“Danske Bank has been studying the financial peace of mind of Nordics since 2018, and Finns have consistently ranked the lowest. Now, the gap between Finland and the other Nordic countries is growing even wider. Financial peace of mind has societal implications—it fosters economic activity, supports healthy risk-taking and entrepreneurship, and creates conditions for investments and new jobs,” said Jens Wiklund, Country Manager for Danske Bank Finland.
The lack of financial peace of mind among Finns is primarily driven by concerns over meeting basic living expenses. Nearly three out of five Finns (59%) worry at least monthly about having enough money for essentials, compared to 34-40% in other Nordic countries.
“To succeed as a nation, we must ensure that Finns have the means and opportunities to prepare for life’s pleasant and unpleasant surprises. More of us need to feel that we can take control of our lives and live the way we want. Public discourse on the economy impacts individuals’ financial peace of mind. To reverse declining confidence trends, we need a vision for a prosperous Finland and clear steps to achieve it,” Wiklund emphasized.
Finns are less worried about long-term debts such as mortgages compared to Norwegians and Swedes. Only 34% of Finns express concern about long-term debts to some extent, compared to 39% in Sweden, 43% in Norway, and 31% in Denmark. Additionally, Finns are less concerned about their personal wealth than other Nordics.
“The differences can be explained by the fact that households in other Nordic countries have more debt and assets than Finnish households. They are also more exposed to market fluctuations. Currently, falling interest rates and rising stock markets are bolstering financial peace of mind, particularly in other Nordic countries. In Finland, economic discussions have been quite gloomy, especially this spring, due to the need for public financial adjustments and the struggles in the construction sector,” noted Danske Bank Chief Economist Pasi Kuoppamäki.
The survey underscores the need for focused economic policies and positive public discourse to restore financial confidence among Finns and bridge the growing gap with their Nordic neighbors.
HT
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Source: www.helsinkitimes.fi
