Finland's economy is expected to stagnate this year, with the European Commission projecting GDP growth of just 0.1 percent.
This comes on the heels of weak performance in 2023 and 2024, and the country's recovery has effectively stalled. Finland lags behind both the EU and eurozone averages, which are forecast to grow around 1.4 percent and 1.3 percent, respectively.
Weak purchasing power, driven by the lingering effects of the downturn and global uncertainties, has constrained domestic demand, placing Finland among the EU member states with the slowest economic growth.
Several factors underpin this underperformance, according to the Commission. Household consumption has declined, investment remains subdued, and unemployment has grown.
Some glimmers of hope
Despite current stagnation, Finland's economic outlook is improving, with GDP projected to expand by 0.9 percent in 2026 and 1.2 percent in 2027, according to the Commission.
Unemployment in Finland reached around 10 percent this year but is expected to decline gradually to nine percent by 2027.
But even with a gradual recovery in employment, public finances continue to face pressures.
Finland's public debt is projected to accelerate from 82.5 percent of GDP in 2024 to 92.3 percent by 2027, reflecting one of the fastest debt growth trajectories in the EU. This would make Finland the sixth most indebted member state in the bloc, according to the Commission's projections.
