Finland’s economy expanded by 0.9% quarter-on-quarter in the first quarter of 2026, matching preliminary estimates and accelerating from a downwardly revised 0.3% growth in the previous quarter. The latest reading marked the strongest quarterly expansion since Q3 2021, largely supported by a sharp 30.8% increase (vs 2% in Q4 2025) in government spending, linked to defense investments, as deliveries of state-purchased fighter jets began. Net external demand also contributed positively to the GDP, as exports (3.2% vs -3.3%) grew more than imports (2.2% vs -0.9%). Additionally, household expenditures (0.9% vs 0.2%) rose at a faster pace. On the other hand, growth in private investments slowed to 0.4% from 2% in the prior period. On a yearly basis, the economy grew by 1.1% in Q1, the fastest rise since Q4 2024, after a 0.1% expansion in the preceding period.

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