Why isn’t the Finnish economy growing? asks Helsingin Sanomat.
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Image: Henrietta Hassinen / Yle
In just three years, Finland could hit an alarming milestone: two full decades without growth. The economy still hasn’t bounced back from the 2008 crash, and between 2007 and 2023, output per person actually fell by 7 percent, reports Helsingin Sanomat.
At the same time, Sweden and Denmark have been moving in the opposite direction, posting gains of 18 and 19 percent. The continuing stagnation has fuelled debate over why Finland isn’t keeping pace.
A new generation of economists talking to HS said the reasons are obvious: Finland hasn’t been investing enough in quality education across the board. The share of young people with higher education in Finland has now fallen below the OECD average.
“This isn’t some law of nature. It’s a deliberate decision. We are actively preventing young people from getting an education,” said Stockhom University assistant professor Joonas Tuhkuri, referring to Finnish universities’ low intake rate.
Preliminary budget talks for Finland’s 2026 fiscal year, led by Finance Minister Riikka Purra (Finns), recently proposed roughly one billion euros in cuts, including a freeze on university funding.
Buyers’ market?
Hufvudstadsbladet suggests that Finnish homes have not been this affordable in 50 years. In relation to wages, housing prices are now low, according to Aktia’s chief economist, Lasse Corin.
There’s no local data that directly links housing prices to wages, HBL explained, but Statistics Finland’s real price index, comparing housing costs to overall prices, backs up what Corin also called the country’s growing divide.
But it’s difficult to make generalisations about an entire country.
Helsinki has seen prices drop sharply, but downtown they’re now back to 2014 levels. In smaller towns like Kouvola, where the population is shrinking the fastest, prices have been falling for decades. There, the real price index is at its lowest point since 1992.
Peat and paint
Environmental activists who vandalised the parliament building with red paint last autumn are now facing the bill.
According to Iltalehti, repairing the damaged columns will cost between 10,000–12,000 euros. Total expenses are, however, expected to reach about 25,000 euros, the parliament announced on Monday.
Parliament has filed a compensation claim to cover the cost of repairs.
The protest action aimed to draw attention to the Finnish state’s involvement in the highly polluting peat industry in Sweden, according to two environmental groups, Elokapina (the Finnish branch of Extinction Rebellion) and the Swedish NGO Återställ Våtmarker (“restore wetlands”).