Finland's economy is showing firmer signs of recovery than many economists expected just a few weeks ago. Fresh data suggest the upswing that began earlier this year is continuing, offering cautious optimism after a prolonged period of weak growth, Kauppalehti reported today, citing two chief economists.
Finland's total output increased 2.8 percent in May compared with the same month last year, adjusted for working days, Akava Chief Economist Pasi Sorjonen posted on X today, citing official data. Output also rose 0.8 percent from April, while April's growth figures were revised upward. Sorjonen said the second quarter has started "much stronger than expected."
MuniFin (Kuntarahoitus) Chief Economist Timo Vesala reached a similar conclusion. "The economy's momentum has genuinely turned," he posted on X, while cautioning that monthly indicators can fluctuate. He added that the overall picture has "changed significantly for the better during the past month."
The stronger data comes despite earlier concerns that geopolitical risks, including potential disruption to shipping through the Strait of Hormuz, could weaken second-quarter growth. Those fears have yet to appear in the domestic figures.
Both economists stopped short of declaring victory. Sorjonen warned that it is too early to assume the current pace of growth will continue throughout the year. Vesala said a durable recovery will depend on stronger household spending and a decline in unemployment. If private consumption strengthens, he believes Finland's economy could recover at a pace approaching 3 percent.
Stay on the pulse, catch the signals
Subscribe to Listeds Leadership Intelligence Platform:
leader and company database access
email alerts
career, boards and interim opportunities