Savings create the foundation for the next growth leap

Finland’s economic growth bottleneck is not a lack of money. On the contrary: Household wealth has grown, the savings rate is positive, and bank accounts hold more money than in years. Yet consumption and investments are progressing cautiously.

In the second episode of Alma Media’s video podcast discussion themed Finland to Growth, Kesko’s CEO Jorma Rauhala and Alma Media’s CEO Kai Telanne delve into the relationship between saving and consumption. The focus is primarily on households and demand: Why consumption decisions are not yet moving forward, even though the prerequisites exist.

When the future feels uncertain, big decisions are postponed

A graph compiled by Kesko on Finnish consumer confidence and savings rate served as the starting point for Rauhala’s and Telanne’s discussion (Source: Statistics Finland, 12/2025).

Statistics reveal a contradictory situation. Households’ disposable income has risen, and consumption is also growing slightly, but major investment decisions, such as changing homes or cars, remain on hold.

According to Rauhala, uncertainty is not only related to one’s own finances but also to the surrounding world.

The inflation peak in 2022–2023, concerns about interest rates, labor market outlook, and the global geopolitical situation have left their mark on consumers’ minds, even though many have seen their financial conditions for consumption improve.

“Even if one’s own finances are in order, decisions are postponed if the overall picture feels hazy. For an individual, the biggest investment decisions in life often concern housing or mobility, so it is natural that these are carefully weighed during uncertain times,” Rauhala states.

“Consumers’ balance sheets have strengthened, and saving is a completely rational activity when the future feels uncertain. Companies also act this way: preparing for the future and starting to save,” Telanne adds.

Savings enable growth – if they move.

Saving is not a problem. On the contrary: Without savings, there are no investments, and without investments, there is no sustainable growth. At this stage, however, the question is not yet about companies’ growth strategies, but about when consumers dare to make the biggest financial decisions of their lives.

Housing sales, car sales, and renovations form long value chains, where a kick-off can quickly initiate broader economic activity. There is potential, but the first step is missing.

Who initiates demand growth?

The key question is: Who initiates the growth of consumer demand—consumers or businesses?

According to Rauhala, it is difficult for companies to force demand into motion through marketing amidst uncertainty. Offers and campaigns alone are not enough if consumers do not believe in tomorrow.

Telanne describes the situation as a kind of chicken-and-egg scenario, where someone has to take the first step:

“Traditionally, it has been companies that have better resources than consumers to take risks. I believe that companies will start investing somewhat proactively, considering potential demand growth.”

The main message of the discussion is clear: Saving is not the enemy of growth.

Economic growth emerges when confidence is sufficient, purchasing power is unleashed, and savings are directed towards consumption and investments. What is crucial is how uncertainty is dismantled—and when the first move is dared to be made.

This article is a summary of Alma Media’s Sustainable Growth Accelerator video podcast. The topic of how Finland’s economic growth can be accelerated is discussed in three different conversations with Kesko’s CEO Jorma Rauhala and Alma Media’s CEO Kai Telanne. Watch all episodes!

Share article