The Finnish economy is slowly emerging from a prolonged recession, with the Ministry of Finance projecting modest growth ahead. According to the ministry's autumn forecast, Finland's gross domestic product is expected to grow around 1.0 percent this year, 1.4 percent in 2026, and 1.7 percent in 2027. Despite falling inflation and lower interest rates improving household purchasing power, the recovery has been hampered by weak consumer confidence and economic uncertainty.
Unemployment remains a significant challenge, standing at about 9.4 percent of the labor force—among the highest rates in the European Union. The ministry expects the unemployment rate to decline to 9.0 percent in 2026 as economic activity strengthens. Growth in the labor force, driven by immigration and government employment measures, has so far translated mainly into higher unemployment rather than new jobs, reflecting the sluggish nature of the recovery.
Investment activity shows more promising signs after two years of decline. Defense procurement, including fighter aircraft purchases, is pushing defense spending to record levels, while renewable energy initiatives and new technologies are creating longer-term investment growth. However, the construction sector remains weak, with housing starts well below the level needed to meet long-term demand, and only gradual recovery is expected.
Public finances remain in "deep structural imbalance," with the ministry projecting a general government deficit of 4.3 percent of GDP this year, narrowing to 3.6 percent in 2026. The sustainability gap is estimated at about 2 percent of GDP, or roughly 7 billion euros, by the end of the decade. International factors, including higher U.S. tariffs and euro appreciation, continue to weigh on Finnish exports, though some positive signs from the euro area recovery provide cautious optimism.
Swedish prosecutors have charged four men aged 20 to 24 with robbery and assault in connection with three separate incidents that occurred in central Stockholm on August 27. The charges include allegations of unprovoked violent attacks with a hate crime motivation, according to court documents released by the Swedish Prosecution Authority.
The defendants are accused of robbing one individual and threatening that person's friend in Stockholm's city center, followed by what prosecutors describe as a severe assault against another person later the same night. Three of the men face additional charges for an assault that took place on the Stockholm metro system during the same evening. All victims in the three separate incidents were reported to have foreign backgrounds, though they had no connection to each other.
Prosecutor Gustav Andersson, who led the preliminary investigation, stated that surveillance footage and photographs show some of the defendants making Nazi salutes in connection with the alleged crimes. During house searches, authorities reportedly discovered materials and symbols indicating connections to right-wing extremism. The indictment specifically references the neo-Nazi and violence-promoting Aktivklubb movement as evidence of the motive behind the alleged offenses.
The Aktivklubb movement represents part of a larger international right-wing extremist network that outwardly focuses on strength training and martial arts. In Sweden, the movement gained traction in 2023 through the Aktivklubb Sverige network, which serves as an umbrella organization for local clubs. According to the Expo Foundation's 2024 annual report, five groups from Skåne to Hälsingland are part of Aktivklubb Sverige, with the number of registered activities increasing significantly last year.