Danske Bank raises Finland growth forecast to 1.8 percent

Finland’s economy grew faster than expected in the first half of the year, prompting Danske Bank to raise its growth forecast for 2026, according to an economic review published by Yle.

The bank said the economy grew by 1.4 percent in January–June compared with the same period last year. It now expects gross domestic product to grow by 1.8 percent in 2026, up from its previous forecast of 1.1 percent. Its forecast for 2027 has been raised to 1.4 percent.

Danske Bank attributed the stronger growth mainly to the smaller-than-expected impact of the war in Iran and increased private consumption. Earlier this year, the bank had estimated that the crisis in the Middle East could threaten Finland’s economic growth.

However, the bank said higher energy prices and interest rates resulting from the war in Iran would continue to moderate growth during the rest of this year and next year.

Antti Ilvonen, a senior analyst at Danske Bank, said companies’ growth prospects had improved despite some difficulties.

“Finland’s export industries, which benefit from the global investment cycle, have seen strong growth in their order books during the first half of the year,” Ilvonen said in a statement.