Our Chief Economist, Youssef Zad, and summer intern Kasper Thuneberg have been preparing the latest Finnish Startup Community Economic Outlook.
Here are some of the key highlights from our Summer 2025 analysis:
Economic growth in Finland remains weak. The Finnish economy is experiencing significant challenges, with GDP growth projected to reach only 1% in 2025. Despite easing inflation and reduced interest rates, consumer confidence remains low as households continue to exhibit caution regarding major spending decisions.
Persistent unemployment challenges continue to impact Finland. The country’s unemployment rate has risen to nearly 9%, now ranking as the third highest in Europe. Although an increase in labor market participation is a positive indicator, structural issues such as limited job creation and skills mismatches continue to hinder progress.
Public debt in Finland is rising. Public debt has now exceeded 82% of GDP and is expected to continue increasing. Fitch’s recent downgrade of Finland’s credit rating from AA+ to AA emphasizes the urgent need for effective fiscal policies to manage and control debt levels.
There is a strong recovery in startup funding in Finland. Investments in startups are demonstrating robust recovery, with funding anticipated to reach a record-high of €1.73 billion in 2025. This recovery is driven by favorable market conditions, easing inflation, and attractive interest rates following the challenging environment of 2023.
Startup sentiment remains uncertain. Despite improved investment conditions, sentiment within the startup community has declined for four consecutive quarters. This reflects ongoing global economic uncertainty and cautious outlooks on international trade and policy.
Explore our full report here: