Foreign investment in Finland grows, yet country struggles to match Nordic rivals
Finland attracted €2.4bn in new foreign investment last year, but figures remain far below Sweden’s as government seeks to lure more international capital.
Text by Martti Asikainen, 9.9.2025 | Photo Adobe Stock Photos
Finland’s foreign direct investment rose by €2.4bn in 2024, bringing total foreign investment stock to €83.5bn by year-end, according to new figures from Business Finland’s investment division.
However, despite the uptick, Finland continues to lag significantly behind its Nordic neighbours in attracting overseas capital, a gap that economists say could hamper the country’s economic recovery and growth prospects.
Foreign investments account for approximately 30% of Finland’s GDP, a stark contrast to neighbouring Sweden, where the figure stands at 74%. The disparity underscores Finland’s urgent need to bolster its appeal to international investors.
Sweden itself remains Finland’s largest foreign investor, contributing €20.7bn, which is roughly a quarter of total foreign investment stock. The UK, US, Denmark and Norway also feature prominently among source countries.
Green projects in the pipeline
Senior market intelligence adviser at Invest in Finland, Kaija Laitinen, suggested the official statistics may understate the scale of incoming investment, as many major projects, particularly data centres and green transition initiatives, have secured investment commitments but have yet to be reflected in capital flow figures.
According to Laitinen, investment processes are long and often take years to be realised. She also stressed the importance of policy stability across electoral cycles, warning that long-term investment projects require predictable regulatory and operating conditions.
The current coalition government, led by Prime Minister Petteri Orpo, is expected to remain in office until spring 2027.
Investment activity gains momentum
Between January and August 2025, Invest in Finland recorded 300 new foreign investment projects, which is 62 more than during the same period in 2024, when 238 projects were logged.
This year’s investments have concentrated in business services, healthcare and social care, retail, digitalisation and clean technology sectors.
Swedish companies have been the most active investors in Finland this year, accounting for 90 of the 300 projects recorded. Foreign-owned enterprises have become a crucial pillar of Finland’s labour market.
Between 2010 and 2023, such companies created 109,000 jobs in the country. By 2023, foreign-owned firms employed 321,000 people, which is 21% of all private sector employment.
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