Finnish Q2 GDP Growth Unchanged at 0.9%

Finland’s gross domestic product expanded 0.4% quarter-on-quarter in the second quarter of 2026, well below the preliminary estimate of 0.9% and slowing from a downwardly revised 0.8% growth in the previous period. The weaker performance was driven by declines in household consumption (-0.5% vs 0.6% in Q1), government spending (-0.3% vs 0%), and gross fixed capital formation (-8.5% vs 6.8%). Meanwhile, external demand supported growth as exports of goods and services jumped 5.7%, up from 2.3%, while imports rose 2.2% from 2%. On a yearly basis, GDP growth accelerated to 1.6% in Q2 from an upwardly revised 1.2% in the previous quarter, marking the strongest expansion since Q4 2024.

Finland’s economy expanded 0.9% quarter-on-quarter in the second quarter of 2026, matching the growth rate recorded in the previous three-month period, preliminary estimates showed. It marked the strongest quarterly expansion since Q3 2021, signalling a sustained recovery in economic activity. On a yearly basis, Finland's GDP accelerated to 2.5% from 1.1% in the first quarter of 2026, marking the fastest pace of growth since the first quarter of 2022.

Finland’s economy expanded by 0.9% quarter-on-quarter in the first quarter of 2026, matching preliminary estimates and accelerating from a downwardly revised 0.3% growth in the previous quarter. The latest reading marked the strongest quarterly expansion since Q3 2021, largely supported by a sharp 30.8% increase (vs 2% in Q4 2025) in government spending, linked to defense investments, as deliveries of state-purchased fighter jets began. Net external demand also contributed positively to the GDP, as exports (3.2% vs -3.3%) grew more than imports (2.2% vs -0.9%). Additionally, household expenditures (0.9% vs 0.2%) rose at a faster pace. On the other hand, growth in private investments slowed to 0.4% from 2% in the prior period. On a yearly basis, the economy grew by 1.1% in Q1, the fastest rise since Q4 2024, after a 0.1% expansion in the preceding period.