Bank of Finland chief says AI adoption, not invention, will decide Europe's growth
Bank of Finland Governor Olli Rehn used a Citi Macro Forum address in Bangkok to set out the ECB's updated growth outlook, Finland's export and data-centre-driven recovery, and his view that Europe's AI challenge is adoption rather than invention. He also flagged energy-driven inflation risk and three structural tests facing Europe.
- The ECB revised its euro area growth forecast upwards in September, now projecting growth of slightly less than one per cent this year and around one and a half per cent in each of the following two years.
- Rehn said euro area inflation remains above target mostly due to higher energy prices but is not broad-based, with wage growth remaining moderate.
- Finland's electricity production is now 96% fossil-free, which Rehn cited as an example of the region's energy transition.
- Finland's growth prospects have improved compared with earlier forecasts, supported by stronger exports and a data-centre investment boom drawing demand for clean electricity and digital infrastructure.
- Rehn identified three strategic tests for Europe: security and defence investment, energy resilience, and productivity growth through innovation and capital markets deepening.