Finland’s economy stays fragile as housing starts stall
Finland's economy remains fragile as housing starts are forecast at 15,000–17,000 nationwide, with overbuilding in Tampere and Helsinki. The outlook foresees about 1.5% growth this year and a roughly 1.8% drop in housing prices, along with rising unemployment.
Aamulehti reports that Finland's economy remains fragile as housing starts are forecast at 15,000–17,000 nationwide, with overbuilding notably in Tampere and Helsinki
Danske Bank's chief economist Minna Kuusisto forecasts 1.5% growth this year, while housing prices are expected to fall about 1.8%. She notes that the impact could be muted if Hormuz Strait traffic normalizes soon, keeping the forecast toward the optimistic end of the bank's range. Unemployment is expected to worsen this year, but the growth path remains at 1.5%, and next year unemployment could ease as employment turns, supporting a slow revival in consumption.
Rakli's sector review mirrors the caution in the housing market, predicting new starts of 15,000–17,000 this year—roughly last year's 16,800—with the underlying drivers including a narrowed price gap between new and old homes and an oversupply. In Tampere, 2020–2025 saw 18,575 apartments built against 16,873 new households, leaving about 1,700 extra homes for the market to absorb, illustrating the current overhang even without global risks.
Catch the full story over at Aamulehti
