The Finnish construction industry is facing challenges, with new residential building projects declining and privately financed housing production at a standstill in early 2023. The Confederation of Finnish Construction Industries (RT) projects a modest 4% growth for the industry next year, largely driven by weak comparison figures.
In 2022, the construction sector experienced a historic contraction of 16%, with the decline expected to slow to 7% this year. Despite positive economic indicators, including lower interest rates, there is still a lack of momentum in the Finnish economy for a full turnaround in construction.
Demand for new residential properties remains low, with factors like tighter financing conditions and slow sales affecting construction. RT estimates a decrease in new housing projects this year, with government-subsidized housing production helping cushion the impact.
Commercial property construction continues to decline, while the renovation sector is facing challenges due to rising costs. Infrastructure construction is expected to grow in 2024, driven by government investments in transportation and energy projects.
Despite some positive signs, overall recovery in the construction industry will be slow, with employment levels expected to decline into next year.
HT