The global outlook is weakening, slowing growth in Finland. The Finnish economy has still not recovered from the sharp 2008-09 recession and GDP remains about 3% below its mid-2008 level. Unemployment may start to increase again. Policymakers should cushion the downturn by strengthening active labour market policies. An even worse global outlook may materialise, however. Risks relating to the ongoing sovereign debt crisis in the euro area, and the weak health of the banking sector in many countries are significant.