HELSINKI, Sept. 2 (Xinhua) -- Nordea Bank, a leading Nordic banking group, on Wednesday raised its forecast for Finland's economic growth this year to 1.7 percent from 1 percent, citing stronger-than-expected growth in the first half of 2026 and improving domestic demand.
The bank expects Finland's gross domestic product (GDP) to grow by 2 percent in both 2027 and 2028.
Nordea said the Finnish economy has expanded on a broad front this year despite uncertainty stemming from the conflict in the Middle East, inflation and higher interest rates. Growth has been supported by strong industrial activity, recovering investment and a gradual pickup in household consumption.
Finland's export sector has maintained strong momentum since last year, particularly in the metal, defense and maritime industries, Nordea said. Rising export orders point to continued strength in industrial activity next year.
The global artificial intelligence boom has also boosted demand for semiconductors and physical infrastructure such as data centers. Nordea said Finland has benefited through both exports and foreign investment in data centers, which has helped support the domestic construction sector after several difficult years.
On the external outlook, Nordea said global growth continues to be supported by technological development and related investment, as well as relatively expansionary fiscal policies and favorable financing conditions in many countries.
"Geopolitical uncertainty increases risks to the global economy, but so far the adjustment to reduced supplies of energy and many raw materials has been surprisingly agile," Nordea chief economist Tuuli Koivu said.
The bank expects consumer caution in the eurozone to ease gradually and business investment to strengthen alongside global growth. It warned, however, that rising long-term interest rates and political uncertainty continue to pose risks to the outlook.
