People shopping at the Sello shopping centre in Espoo. Photo: Emmi Korhonen / Lehtikuva
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Finland’s economy contracted slightly in the second quarter of 2025, diverging from modest growth in the EU, according to figures published by Statistics Finland on Thursday.
Gross domestic product (GDP) volume fell by 0.4% from the previous quarter. Adjusted for working days, the year-on-year change was flat. By contrast, GDP across the EU rose by 0.2% during the same period.
Antti Kosunen, senior statistician at Statistics Finland, said the downturn was driven by falling household and public consumption.
“Consumption, both private and public, weighed on GDP between April and June,” Kosunen said.
Private consumption dropped by 1.3% compared to the first quarter, while public consumption fell by 1.0%.
Foreign trade data showed a mixed picture. Export volume declined by 0.2% from the previous quarter, while imports increased sharply by 2.5%.
Investment, however, offered some relief. Private investment rose by 2.9% and public investment by 5.1%. Kosunen described this as a positive signal for the broader outlook.
Industrial production increased slightly, supported primarily by the chemical industry, which had a strong quarter. Other industrial sectors remained at previous levels. Compared to the same period last year, all major industrial sectors showed annual growth, again led by chemical production.
Retail activity also edged up. Trade volumes grew slightly, driven by gains in retail sales, while other areas of the trade sector remained stable.
Construction output declined marginally from the first quarter. Building construction increased by 0.1%, while civil engineering, such as road and water infrastructure, decreased by 0.5%.
Monthly data from the production trend indicator suggest a mixed trajectory. In July, total output was unchanged year-on-year but grew by 0.4% compared to June when seasonally adjusted. This indicator serves as an early signal of GDP movements in quarterly accounts.
HT
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Source: www.helsinkitimes.fi
