Finland's economy forecast to expand 1.5% this year and 1.7% next year

Finland's leading mortgage lender Hypo projects gross domestic product growth of 1.5 % for the current year and 1.7 % for the following year, despite headwinds from the global trade dispute, the Persian Gulf energy crisis and heightened interest‑rate uncertainty. Consumer confidence remains weak, keeping growth modest, while wages are rising faster than prices. The bank warns that public debt is approaching 100 % of GDP, a level that could become unsustainable without structural reforms and stronger growth.

Unemployment is expected to stay high at around 10 %, with long‑term joblessness comparable to the early 1990s downturn. Although household investment wealth has risen sharply, housing remains the dominant asset for Finnish families, making property‑price movements a key factor for household balance sheets. The forecast also notes that Finland's low dependence on oil and its largely carbon‑free electricity system cushion the economy from the worst effects of the energy shock.