Finland Recovers from Recession, Yet Debt Continues to Rise, According to Finance Ministry

HELSINKI (Reuters) – The Finnish economy is showing signs of recovery from its recent recession, but public debt continues to increase, according to the country’s Finance Ministry.

On Monday, the ministry revised its gross domestic product (GDP) forecast for 2024 to -0.2%, a decrease from the 0% estimate made in June. However, it raised the 2025 growth projection to 1.7%, up from the previously anticipated 1.6%.

In a statement last week, the Finnish central bank noted that the recovery is occurring slowly, forecasting a GDP contraction of 0.5% for 2024, followed by a growth of 1.1% in 2025.

The government’s fiscal budget deficit is projected to rise to 3.7% of GDP in 2024, an increase from 2.9% in 2023, as estimated by the ministry. Additionally, the 2025 deficit forecast has been revised to 3.2% of GDP, up from the previous estimate of 3.1%.