Finland's economy returns to growth after prolonged slump

Finland's economy has shown clear signs of recovery after a lengthy period of stagnation. Data confirms that the Finnish economy grew by 0.9% in the first quarter of this year compared to the previous quarter.

Finland's economy, Estonia's largest trading partner, has finally turned a corner after an extended period of sluggish performance. Fresh data confirms that the Nordic nation's GDP expanded by 0.9% in the first quarter of 2025 compared to the preceding quarter — a notable shift after months of economic weakness.

The turnaround is significant not only for Finland itself but also for Estonia, which relies heavily on its northern neighbour as a key export market. A healthier Finnish economy is expected to have positive knock-on effects for Estonian businesses operating across the Gulf of Finland.

Finland had been among the slower-recovering economies in the eurozone, weighed down by weak domestic demand, declining construction activity, and sluggish export markets. The latest figures suggest those headwinds may finally be easing, offering cautious optimism for the remainder of the year.