Bank of Finland cuts growth forecast over energy shock

2026-03-24 - 13:22

Finland’s central bank has lowered its economic growth forecast, citing rising energy prices linked to the Iran war and growing uncertainty in global markets. The Bank of Finland said the economy will expand by 0.6 per cent in 2026, down from earlier projections, with growth expected to reach 1.4 per cent in 2027 and 1.5 per cent in 2028. The revision follows a period of recovery at the end of 2025, driven by private consumption and investment. The central bank warned that higher energy costs now weigh on the outlook.