The economy shows signs of growth across an array of sectors, says Statistics Finland.Image: Valokuvat: Esa Syväkuru, Henrietta Hassinen, Jarkko Riikonen / Yle, kuvakombo: Miia Anttila / YleYle News11:16Finland's gross domestic product grew by 0.9 percent during the first three months of this year compared to late 2025, Statistics Finland said on Friday.Demand was boosted by growth in investments, exports and private consumption. The economy expanded particularly thanks to brisker activity in the forest and chemical industries, energy and water supply, and private services.Finland's economic figures for the first part of the year have placed it among the top performers in international comparisons. Its growth in the first quarter was the second fastest of the 38 industrialised OECD member countries.Nordea Bank economist Juho Kostiainen points out that there has now been growth in all sectors, including industry, trade, services and construction."There's been widespread growth in production since last autumn," he told Yle on Friday morning.So far, the recovery in construction has been moderate, but the number of building permit applications points to an upturn for the rest of the year.Like construction, industrial production also seems to have switched onto a growth track last autumn."Order backlogs strengthened throughout last year, and that is now starting to be seen quite clearly in production," says Martti Pykäri, chief economist at the service-sector employers association, Palta.Fighter jets push up public investmentsGrowth has been particularly strong in the chemical and metal industries, for example. Goods exports have expanded so far this year in many sectors.Public investments grew by nearly 31 percent in the first quarter – due largely to state defence investments as deliveries of the first new F-35 fighter aircraft from the US approach. Acquisition of the 64 jets is expected to cost around 10 billion euros, including weaponry and airfield modification costs.In January to March 2026, the volume of exports rose by 3.2 percent, while imports grew by 2.2 percent.Growth can also be seen in trade and services, reflecting the fact that domestic consumption has picked up.Economists stress that domestic consumption is now crucial for economic growth. Weak domestic consumption rather than global economic trends appears to have been the primary obstacle to growth in Finland.In recent years, consumption has declined, even though average household incomes and purchasing power have improved. At the same time, though, unemployment has risen to record-high levels while cuts to social benefits have hit consumption among low-income earners.Nordea's Kostiainen notes that last year was strong for most households, with earnings growing by around three percent and inflation nearly non-existent, meaning purchasing power clearly improved.Question marks about the rest of 2026Now the concern is that the Iran war, higher oil prices and rising interest rates will eat into the burgeoning growth. For example, the European Commission just lowered its growth forecast for the euro area this year from 1.2 to 0.9 percent.Nordea kept its previous forecast for the Finnish economy unchanged a couple of weeks ago, and still predicts growth of one percent for this year.
Finland's economy perking up
The economy shows signs of growth across an array of sectors, says Statistics Finland.












