Finland forecasts economic growth of 1.7% in 2026
Research institutes Etla and Labore have raised their forecast for Finland’s economic growth in 2026 to 1.7%. Previously, Labore expected growth of 0.9%, while Etla forecast 1%. This was reported by YLE News.
Exports and investments will support growth
Labore believes that exports, investments and a recovery in private consumption will contribute to the economic recovery. At the same time, employment, according to the institute’s assessment, will improve slowly.
Etla also expects investments to boost the economy, while private consumption will grow at the end of the year. It forecasts that the recovery will begin to be reflected in the labor market at the end of the year, although before then the unemployment rate will reach record-high levels.
Forecasts for the coming years
Labore raised its estimate for economic growth in 2027 from 1.2% to 1.6%, while leaving its forecast for 2028 unchanged at 1.5%. Etla expects the Finnish economy to grow by 1.9% in 2027 and by 1.4% in 2028.
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According to Labore, the recovery will be uneven, with problems in residential construction persisting. The institute named higher energy prices and international uncertainty as risks to growth.
Unemployment will decline slowly
Both institutes forecast a gradual decline in unemployment. Labore expects the average unemployment rate in 2026 to stand at 10.4% and to fall to 9.2% by 2028. Etla forecasts that unemployment will drop below 10% in 2028.
Labore notes that at the initial stage of the recovery, companies increased production with their existing staff. According to the institute’s forecast, demand for additional labor will grow at the end of the year and in 2027. Etla links stronger growth next year to private investment and consumption; investment growth is expected to be largely ensured by Google’s announced funding for data centers.
