Finland economic outlook shows potential recovery in labor and housing markets

Economic indicators in Finland suggest a potential turnaround in both the labor and housing markets. Aktia Chief Economist Lasse Corin predicts that unemployment may begin to decline within this year, driven by an economic growth forecast of 2.1 percent. Corin notes that while GDP growth has been stronger than expected, employment typically reacts to economic cycles with a delay. However, increasing confidence indicators regarding hiring intentions, particularly in the service sector, suggest a shift is approaching.

In the housing market, S-Pankki CEO Riikka Laine-Tolonen reports signs of increased activity in mortgage applications. Although consumer confidence regarding home buying remains low due to property prices being approximately 15 percent lower than in 2022, Laine-Tolonen suggests this may present opportunities for first-time buyers. S-Pankki is also expanding its market presence through the acquisition of Oma Säästöpankki.