Finland economic growth forecasts rise amid improving SME sentiment

Economic forecasts for Finland indicate a strengthening recovery. Research institutes Etla and Labore have raised their 2026 economic growth projections to 1.7%, driven by exports, investments, and a recovery in private consumption. While the labor market is expected to improve gradually, unemployment rates may remain high in the short term.

A recent SME barometer conducted by Suomen Yrittäjät, Finnvera, and the Ministry of Economic Affairs and Employment shows improved business sentiment compared to last year. While many small and medium-sized enterprises report better outlooks for turnover and growth, investment intentions remain cautious across most sectors. In regions like Varkaus, business confidence is exceptionally high, whereas areas like Northern Ostrobothnia show a slower turnaround.

Investment growth is expected to be bolstered by significant projects, including Google’s planned data center funding. However, challenges persist, including high energy prices, geopolitical uncertainty, and concerns regarding the availability of financing and strict collateral requirements from banks. Political discussions have also emerged, with some leaders calling for economic predictability and stable taxation to support continued business growth.