Finnish consumer confidence in economy falls further as outlook called “extremely pessimistic”

Consumer confidence in Finland’s economic prospects has declined again in April, with expectations for both personal and national finances a year ahead dropping to new lows, according to Statistics Finland.

Economic uncertainty is being driven by global conflicts and domestic fiscal concerns, experts say. Terhi-Anna Wilska, a professor of consumer research, attributes much of the pessimism to the war involving the US, Iran, and Israel, which has already pushed up oil, fuel, and mortgage costs—with food prices expected to follow.

“The outlook presented in media is extremely pessimistic,” Wilska told public broadcaster Yle.

Hannu Nummiaro, chief economist at insurance company Lähitapiola, agrees, noting that Finns are highly sensitive to international developments. “A year ago, tariffs were the main concern in our surveys. Now, the Iran war is clearly eroding confidence,” he said.

Domestic factors deepen economic anxiety
Recent public statements about Finland’s fiscal future have also weighed on sentiment. Wilska points to comments by Mika Niemelä, director general of the Ministry of Finance’s budget department, who warned in a Yle interview that upcoming austerity needs may force a rethink of the welfare state’s service commitments. The government’s spring spending limits framework further reinforced a bleak economic picture, with potential cuts exceeding €10 billion in future budgets.

Wilska describes consumer caution as understandable, while Nummiaro highlights Finland’s high unemployment—among the worst in Europe—as a key factor. “People are saving as a buffer against job loss,” he explained.

Policy measures seen as insufficient
Experts argue that recent government incentives to boost spending—such as tax deductions for household work and renovation grants—are too modest to offset broader economic fears. Wilska calls the measures “mere crumbs” compared to past austerity cuts.

A resolution to the Iran war could improve confidence, Wilska adds, but for now, both global tensions and domestic fiscal tightening continue to suppress economic optimism.