A long-awaited economic recovery is finally here, according to economists. It is already showing up in gross domestic product and in the state's tax revenue. But when, and how, will it make a difference to ordinary consumers, mortgage holders and small-time investors?We put these questions to Kaisa Kivipelto, an economist specialising in household finances at Danske Bank.1. How is the economic recovery affecting stock portfolios?Stock markets look ahead, she explained, pricing in expectations as much as, or even more than, current results. According to Kivipelto, stocks have for this reason performed well since last year.There is, however, a caveat when it comes to the Helsinki stock exchange."It is heavily weighted towards international companies whose earnings depend on European industry and developments in China and the United States. In other words, the Helsinki market tends to move more to the rhythm of global growth than of Finland's economic fortunes."2. What about mortgage interest rates?In recent years, the interest rate level set by the European Central Bank (ECB) has arguably been too high for the Finnish economy."If Finland had its own central bank, interest rates would probably be lower," Kivipelto explained.The ECB last raised its policy rates in June, and further increases are expected. But this is not a response to an overheating economy."Rates may have to rise when prices are pushed up by external shocks, as is happening now with the increase in oil prices. The ECB has already raised rates once and may do so again in September."3. When will growth mean more jobs?"Companies start hiring when they have greater confidence in a positive growth outlook. Recruitment decisions are made carefully," Kivipelto said.Firms want to make sure their existing workforce is fully occupied before hiring new staff."That is why it can take six months, nine months or even more than a year for a significant turnaround to show up in the labour market. We should now be entering the phase when more positions start to appear."4. What about pay?Many people expect the economic recovery to show up in their salaries. But Kivipelto points out that, in fact, it already has."For many people this has been visible in their pay for the past couple of years," she said.Wages have risen by 19 percent since 2020 and are expected to increase by more than three percent next year.Many goods have, in relative terms, become cheaper.But despite this, consumer sentiment has remained gloomy. That is understandable, given the alarming news from around the world and the fall in housing prices in recent years.5. When will home prices rise?As the economic recovery gathers pace and confidence returns, demand for mortgages should pick up too. That does not, however, automatically mean house prices will start rising.According to Kivipelto, the housing market has become increasingly fragmented."There may be pockets where prices start rising fairly soon. Family-sized homes in cities could be one such segment, with demand already picking up. At the same time, there is an oversupply of small apartments in larger cities, particularly in the Helsinki region. A turnaround in prices there may take longer."Higher interest rates, along with changes to housing benefits for students, have also dampened enthusiasm for buy-to-rent properties, Kivipelto explained.There is still a large stock of unsold homes on the market.6. Are purse strings loosening?The Finnish Commerce Federation expects retail sales will grow by more than two percent annually this year and next. This uptick has yet to show up in retail jobs, but it is a sign that tills are ringing a little more cheerfully."Finns now have both the means and the willingness to spend a larger share of their incomes than before," Danske Bank's Kivipelto said."This is also reflected in the slight decline in Finns' high saving rate. It suggests that households are once again willing to spend."