Vantaa's economy is in strong deficit - balancing the economy has begun
Vantaa has published its 2025 financial statement. The city's economy is in a deficit of €79.7 million. Finland's weak economy, unemployment, and falling income are reflected in Vantaa's finances. Amidst major investments and changes in the operating environment, Vantaa is seeking balance and vitality by implementing a new strategy.
The general economic situation and international uncertainty are visible throughout the country, including in Vantaa. The city's economy was in a strong deficit, as income fell significantly short of the projected income. Vantaa's spending was implemented in accordance with the budget.
- The economic situation is weak, and we have launched extensive measures to restore balance. A separate economic program will also be compiled based on the new measures, says Mayor Pekka Timonen.
In 2025, the city’s tax revenues decreased by over 2.8 percent compared to the previous year. The decline in tax revenues was due to the general weak economic situation, but especially to the high unemployment rates in Vantaa. Unemployment rates have long been at record highs throughout the country – at the end of 2025, the unemployment rate rose to 14.9 percent in Vantaa.
At the beginning of 2025, one of the biggest changes in the municipal sector took place, when the organization of employment and economic services was transferred to the municipalities. In early 2025, Vantaa successfully welcomed 200 new employees and over 30,000 personal customers to employment services. However, the weak employment situation has had a negative impact on Vantaa's economy, and costs have accrued, for example, from the municipal shares of labor market support.
Vantaa's growth rate has clearly decreased: last year, the city's population grew by just over 2,000 people and fewer than 600 new apartments were completed, which is a record low.
Investments are made with moderation and for future needs
The largest investment in the history of Vantaa, the construction of the Vantaa light rail, began in November 2025.
Among the new building projects completed in 2025 were the expansion of the Kannisto school, the Kuusijärvi buildings, the expansion of the Kytöpuisto school, and the Mårtensdals bildningsrum daycare center. Furthermore, among the renovation projects completed were the renovation of the main building of the Håkansböle manor and several school renovations. Meanwhile, of the group company's projects, the Vehkala campus of Vantaa Vocational College Varia was completed.
– Vantaa's new strategy and the change programs it contains set the direction for Vantaa's future development. In the midst of the current tight finances, we cannot stay where we are, but must have the ability to create something new, take care of the vitality and services of a growing city, says Timonen.
Key figures for 2025 in brief
- Deficit for period was -79.7 million euros.
- Result for period was -77.7 million euros
- Operating revenue was 150.3 million euros.
- Operating costs were 934.8 million euros.
- Total tax revenues amounted to 568.7 million euros and state subsidies to 237.9 million euros. Tax revenues fell 46.3 million euros short of the budget's original tax revenue estimate.
- Net investment expenditure was 210.1 million euros,
- In 2025, the city’s external loan portfolio grew by 198 million euros, with the city’s external loans amounting to 1.06 million euros at the end of the year.
