Finland’s economy heading out of recession : Forecast for the Finnish economy : december 2025

Abstract

Finland’s economy is emerging from a phase of extremely low growth. Nevertheless, although the economy will improve, there is no strong expansionary phase in sight in the immediate years ahead. The risks surrounding the growth forecast are predominantly on the downside. For the full year 2025, growth in the Finnish economy will be almost at a standstill, but in 2026 it will rise to 0.8%. Household purchasing power will strengthen and private consumption will begin to pick up. Exports will increase and there will be a revival in corporate investment too, although economic uncertainty will not fade entirely. Growth in the Finnish economy will climb to about 1.5% in the years 2027–2028. Inflation will stay below 2% in the immediate years ahead, and the employment rate will gradually improve. Despite the stronger economic conditions, Finland’s public finances will continue to be deeply in deficit.