Finnish GDP Contracts 0.4% in Q2

Finland’s economy contracted by 0.4% quarter-on-quarter in the three months to June 2025, compared to both an initial estimate and the previous quarter of flat growth. This marked the first economic contraction since the fourth quarter of 2023, largely driven by a drop in household consumption, which fell by 1.3% after a 0.5% increase in the previous quarter. Net external demand also weighed on GDP, as exports of goods and services declined by 0.2%, slipping from a 3.1% increase in the first quarter, while imports rebounded by 2.5%, following a 0.9% drop. Meanwhile, government spending fell by 1%, though this was a softer decline compared to the 2% drop in the prior quarter. On a year-on-year basis, the country’s GDP stalled, following an upwardly revised 1% expansion in the previous period.