Finnish Business Recovery Strengthens Despite Economic Uncertainty
Finnish companies have seen a broad-based improvement in business conditions during the early summer, according to the latest Business Tendency Survey by the Confederation of Finnish Industries (EK). The survey, conducted in July, indicates that industrial production has grown widely, while construction output has returned to growth after a prolonged downturn. In the services sector, sales have continued to rise at a moderate pace (Yle).
The outlook for the coming months has also brightened across all main sectors. Production is expected to grow at a fairly strong pace for the rest of the year, and the long-term decline in employment has shifted toward modest growth. EK’s Chief Economist Penna Urrila described the development as positive, noting that employment expectations have turned slightly positive after a prolonged period of weakness (Daily Finland).
Persistent Challenges and Global Risks
Despite the recovery, significant uncertainties remain. Weak demand continues to be the most pressing obstacle for Finnish businesses, with 53% of respondents citing it as a limiting factor. While profitability is expected to improve slightly, cost pressures remain strong (Yle).
Global risks also cast a shadow over Finland’s economic outlook. Urrila highlighted tensions in the Persian Gulf, trade policy instability, and the ongoing war in Ukraine as key concerns. Inflationary pressures and rising interest rates further complicate the economic environment. "It is now important to ensure as stable an operating environment as possible to sustain domestic economic growth," Urrila stated (Daily Finland).
The survey included responses from 1,035 companies employing around 260,000 people in Finland.
Consumer Confidence Remains Low but Improves Slightly
While businesses report a strengthening recovery, Finnish consumers continue to view the economic situation as gloomy, though slightly less so than a year ago. According to Statistics Finland, 53% of consumers in July considered the economy weaker than the previous year, down from 59% in 2025 (Yle).
Consumer confidence varied significantly by region, with the Helsinki metropolitan area showing the strongest sentiment at -1.2, while Northern Finland recorded the weakest confidence at -10.6. The national confidence indicator improved to -6.4 in July from -10.5 in May, though it remains below the long-term average of -2.9.
Senior actuary Pertti Kangassalo attributed the persistent pessimism to general uncertainty, noting that "the economic and political climate remains quite gloomy and confusing, both globally and here in Finland" (Yle).