Helsinki, February 28, 2026 – The Europe Today: Finland’s economy expanded by 0.2 per cent in 2025, according to updated figures released on Friday by Statistics Finland, with growth in the final quarter revised down from earlier estimates.
Seasonally adjusted gross domestic product (GDP) rose by 0.4 per cent between October and December compared with the previous quarter. Preliminary data published in January had indicated quarterly growth of 0.6 per cent.
Investment and Consumption Support Recovery
Statistics Finland said the fourth-quarter increase was driven primarily by investment and private consumption. Total demand rose by 0.2 per cent compared with the July–September period.
Private consumption expanded in the final three months of the year at the same pace as in the previous quarter. Spending on durable goods returned to growth between October and December, while consumption of semi-durable goods — including clothing and footwear — increased throughout the year. Despite the late-year improvement, overall consumption still declined in 2025.
The annual growth rate of 0.2 per cent marked a return to expansion following earlier contractions. Statistics Finland noted that the positive annual figure partly reflected the low level of output at the beginning of 2024. GDP had last recorded quarterly growth in July–September 2024 before contracting and then resuming expansion at the end of 2025.
Outlook for 2026–2027
Forecasts released this year project Finland’s economic growth at between 1.0 and 1.5 per cent for 2026 and between 1.5 and 2.0 per cent for 2027. Economists expect household consumption, investment and foreign trade to underpin the recovery.
Sectoral Performance Mixed
Industrial output varied significantly across sectors in 2025. The forest industry posted strong growth in the first quarter, while the chemical industry delivered solid performance in the second quarter. Both sectors, along with the metal industry, contracted in the third quarter. However, metal and chemical industries returned to growth in the final quarter of the year.
Construction activity remained subdued for much of 2025. Output rose modestly in the second quarter before declining again between July and September. Building construction turned positive in the final quarter, though total construction output remained below the level recorded a year earlier.
Trade sectors reported weak performance throughout the year. In contrast, other service industries showed resilience, with information and communication, real estate activities, and business services registering growth.
The latest data indicate that while Finland’s economy has exited contraction, the recovery remains gradual and uneven across sectors.
