The number of companies going bankrupt in Finland has reached levels not seen in 30 years. New data reveals that financial failures have spread across almost every business sector, signaling deep trouble for the local economy.
According to Statistics Finland, just over 3,900 companies filed for bankruptcy last year. This is the highest figure recorded since 1996, a time when Finland was recovering from a severe historic recession.
These bankruptcies have a real human cost. Approximately 14,300 people were employed by the companies that went out of business last year.
The situation appears to be getting worse rather than better. In December 2025 alone, authorities started 360 new bankruptcy proceedings. This was a massive 34 percent increase compared to the same month the previous year.
Experts say this negative trend began a few years ago. Since 2023, an average of 3,600 companies have collapsed annually. For comparison, the yearly average during the 2010s was much lower, at around 2,700 companies.
Mira Kuussaari, a senior statistician at the agency, noted that last year’s numbers were exceptionally high. In the last two decades, bankruptcy figures have only been this bad three times: during the global financial crisis of 2009, in 2013, and in 2023.
While the total number of bankruptcies is high, the companies falling apart are generally smaller. Kuussaari explained that the number of affected employees suggests that Small and Medium Enterprises (SMEs) are the primary victims of this economic wave.
The construction industry has been the epicenter of this crisis. A total of 768 construction firms filed for bankruptcy last year, the highest of any sector. However, there is a small sign of hope here, as the peak for construction failures seems to have passed in 2023.
Unfortunately, the problem is spreading. “In practically all other sectors, the trend has been upward,” Kuussaari stated in a press release.
This wave of bankruptcies is largely the result of a “perfect storm” in the Finnish economy. Throughout 2024 and 2025, Finland struggled with high interest rates and almost zero economic growth. The Bank of Finland estimated that the economy grew by only 0.2% in 2025.
High interest rates made it very expensive for businesses to pay back their loans, while high inflation meant customers had less money to spend. This combination has been deadly for small businesses that do not have large cash reserves to survive long periods of low sales.
