Retail sector’s growth spurt is over – commerce and consumers face uncertainty

According to a recent forecast by the Finnish Commerce Federation, the volume of retail trade turnover will shrink by 2.5 per cent this year and more next year. The increase in turnover in euros will be driven solely by rising costs and prices. If Finland and Europe drift into recession, the fall in trade will deepen. Safeguarding purchasing power is essential for the development of trade, and therefore reducing labour taxation should be a top priority for the next government. A rising price-wage spiral will not support purchasing power.