Finland’s economy is expanding faster than previously expected, led by exports and investment, the Bank of Finland said. The central bank raised its GDP forecast to 1.7% this year and 1.6% in 2027, from earlier projections of 0.7% and 1.2%, respectively, and revised last year’s growth to 0.8% from 0.2%. Unemployment is expected to remain at 10.4% this year before falling to 9.8% in 2027 and 9.0% in 2028 as labor demand increases. Inflation is forecast to reach 2.4% this year because of higher energy prices linked to the conflict in the Middle East, before easing to 1.4% in 2027. The outlook comes after years of stagnation associated with domestic fiscal austerity and Russia’s war in Ukraine. Alphabet’s Google also said it would invest at least €13 billion ($15 billion) in Finnish AI infrastructure over the next two years, its largest European investment.