HELSINKI, Nov. 5 (Xinhua) -- Finland's economic growth in the coming years will be driven mainly by the industrial and construction sectors, according to a new sectoral forecast published Wednesday by ETLA Economic Research of Finland.
The institute said strong industrial activity, supported by new ship and icebreaker orders, together with a gradual recovery in construction, will account for a significant share of Finland's overall economic growth in the next few years.
ETLA noted that Finland's shipbuilding industry is already experiencing what can be described as a "renaissance." Several major new contracts, including large cruise ships at the Turku shipyard in southwestern Finland, defense-related orders at the Rauma shipyard in the west, and an icebreaker deal from Canada at the Helsinki shipyard, have significantly boosted activity, with related work also flowing to shipyards in other parts of the country.
"Thanks to a large number of new ship orders, we can already speak of a renaissance in the shipbuilding industry. We expect manufacturing value added to continue growing not only this year but also over the next two years," said Sakari Lahdemaki, senior researcher at ETLA.
Meanwhile, the outlook for Finland's electrical and electronics industry has brightened, and cooperation between U.S. chipmaker Nvidia and Finnish telecom giant Nokia may further boost activity and value added in the coming years. ETLA expects continued growth in the sector, which could also have positive spillover effects on information and computing services.
Nvidia recently announced a one-billion-U.S.-dollar investment for a 2.9-percent stake in Nokia. The deal marks the start of a new partnership focused on artificial intelligence (AI), data centers and future 6G networks.
The construction sector's downturn is projected to end between 2025 and 2027, supported by lower interest rates, a slowdown in building cost increases, and improving household purchasing power. Growth has been strongest in specialized construction, while residential construction is recovering more slowly.
ETLA also expects moderate growth in the accommodation and catering industries next year, driven mainly by foreign visitors.
Figures from Statistics Finland show that overnight stays by foreign tourists exceeded two million during June-August, up about 12 percent from the same period in 2024. The largest number of overnight stays last summer came from German tourists, at just over 280,000, followed by Swedes with around 240,000. The strongest relative increase was recorded among Chinese visitors, whose overnight stays rose by as much as 43 percent year on year.
However, ETLA cautioned that Finland's export outlook remains uncertain due to global trade tensions and potential U.S. import tariffs.
In its broader economic forecast released in September, ETLA projected Finland's gross domestic product (GDP) to grow by 0.8 percent this year, 1.4 percent in 2026, and 1.2 percent in 2027. ■