2024 financial statement: Vantaa’s steady growth continues despite the economic situation – balancing and carefully considered investments
The City of Vantaa had a total deficit of approximately 61 million euros. Last year, in addition to the overall weak economic situation, the city’s economy was impacted by a decrease in tax revenues and an almost complete halt in construction. However, Vantaa has made investments that will ensure stable growth in the future.
In 2024, the city’s tax revenues decreased by over 8 per cent compared to the previous year. The decrease in tax revenues was mostly caused by the loss of the so-called tax tails in connection with the wellbeing services county reform, but the overall economic cycle also had a significant impact.
Housing construction has fallen to a historically low level in Vantaa. Last year, approximately 1,000 new residential homes were completed, which is less than a third of the level of previous years. The number of started residential homes remained very low, at only 400. This means that the amount of housing production in Vantaa will not substantially rise during the next couple years.
– Finland’s weak economic cycle and economic situation can be seen in Vantaa as well. Unemployment has increased, tax revenues have fallen, and housing construction has come to a halt, which in turn can be seen in the city’s funds,” says Pekka Timonen, Mayor of Vantaa.
The slow development of the national economy was also reflected in the rise in unemployment. Unemployment accelerated particularly toward the end of 2024, being 1.1 per cent higher than the previous year.
However, Vantaa’s population continued to grow, and, in 2024, it exceeded 250,000 residents. Last year, the city’s population increased by roughly 4,000 people, mainly due to immigration.
At the start of 2025, one of the largest changes in the municipal sector took place, as employment services, economic development services and integration services were permanently transferred from the state to the municipalities.
A total of about 71 million euros in appropriations were used for premises investments, which is about 31 per cent below the budget. New construction was the furthest below budget, with about 29 million euros in appropriations, that is, only about 55 per cent of the budget, being used.
At the end of 2024, the Helsinki region’s new 12-year MAL agreement 2024–2035 was signed. In the agreement, the state commits to funding 30 per cent of the Vantaa light rail’s construction costs. The Vantaa light rail is the city’s largest ever investment. The aim is for construction to begin in summer 2025.
Key figures for 2024
- Deficit for period was 61.3 million euros.
- Result for period was -58.8 million euros.
- Operating income was 146.2 million euros.
- Operating costs were 862.7 million euros.
- Total tax revenues amounted to 585.2 million euros and state subsidies to 179.1 million euros. Tax revenues fell 26.8 million euros short of the budget's original tax revenue estimate.
- Gross investment expenditures amounted to 149.6 million euros and the self-financing share of investments amounted to 147.5 million euros.
- In 2024, the city’s external loan portfolio grew by 70 million euros, with the city’s external loans amounting to 861 million euros at the end of the year.
