Finland’s economy shows unexpected growth but consumer confidence remains weak

Finland’s economy grew by 0.9 percent in the first quarter of the year compared to the previous three months, according to preliminary data from Statistics Finland. Despite the positive sign, consumer confidence in the economy continues to decline, with households cutting back on major purchases like housing.

The gross domestic product (GDP) also rose by 1.3 percent compared to the same period last year, exceeding expectations. However, the outlook remains uncertain, as consumer trust in the economy fell further in April, per Statistics Finland.

With the housing market stagnant and spending cautious, public broadcaster Yle is asking Finns what measures they believe would boost economic activity—and what would encourage them to spend more.

The government faces pressure to stimulate growth as Finland’s debt-to-GDP ratio approaches 100 percent, while the budget deficit widens. Earlier this week, a ministry report warned of weak economic expansion ahead.