Finland reported a 0.9% increase in GDP in the first quarter of 2026, compared with the previous quarter, boosted by a stronger performance in exports, investment and private consumption, according to Statistics Finland.
This followed on from a return to positive growth at the end of 2025, the statistics body noted.
Defence spending
Demand was supported by rising exports, stronger household spending and increased investment activity, while defence-related public investment also boosted overall GDP levels.
Statistics Finland said the commencement of fighter aircraft deliveries acquired by the central government caused public investment to surge by 30.8% during the quarter.
The agency noted that the increase in defence investment also raised taxes on products, which contributed further to GDP growth.
Export growth
Exports rose by 3.2% in the January to March period, on a volume basis, compared with the previous quarter, while imports increased by 2.2%.
Private consumption expenditure grew by 0.9%, with spending on semi-durable and non-durable goods rising strongly. However, consumption of services remained flat. Private investment increased modestly by 0.4% during the quarter.
‘The volume of value added grew in January to March 2026. Value added grew most in the forest and chemical industries, energy and water supply, transport, and accommodation and food service activities,’ Statistics Finland noted.
Elsewhere, the construction sector, which has struggled for several years due to rising interest rates and weak demand, has now shown signs of recovery for a second consecutive quarter.
The trade sector also continued its rebound after a prolonged period of weak development – the sector ‘grew during the latter half of last year, and a clearly brisker growth spurt was seen in January to March’, the statistics body said.
Total demand in the national economy increased by 5.2% compared with the final quarter of 2025, driven by higher exports, investments and private consumption. Public investment was the strongest-performing component of demand during the quarter driven by defence spending.
Outpaced the EU
Statistics Finland said Finland’s GDP growth outpaced the wider EU economy during the quarter. Preliminary Eurostat figures showed GDP across the EU area increased by 0.2% over the same period.
The statistics body added that the financial position of Finland’s public sector improved slightly in 2025, while net lending by non-financial corporations, financial corporations and households remained positive. Read more here.
