Updated February 29th, 2024 at 13:06 IST

Finland slips into recession again as GDP declines

High inflation and rising interest rates dampened investment and economic sentiment.

Reported by: Business Desk
Finland economy | Image:Unsplash
Advertisement

Finland slips into recession: Finland's economy entered another recession in the latter half of 2023, according to national statistics released Thursday. 

High inflation and rising interest rates dampened investment and economic sentiment. 

Advertisement

Gross Domestic Product (GDP) fell by 0.7 per cent in October-December compared to the previous quarter, following a 1.1 per cent decline in July-September. 

While the economy briefly rebounded with 0.4 per cent growth in the second quarter of 2023, it had previously fallen into recession towards the end of 2022. 

Advertisement

Sectors such as electronics, forestry, and hospitality were heavily affected, while finance and insurance experienced notable growth. 

The Finnish central bank predicts continued economic strain in 2024 due to higher interest rates and prices, reduced investments, and lingering uncertainty, with recovery anticipated towards late 2024.

Advertisement

(With Reuters Inputs)

Advertisement

Published February 29th, 2024 at 13:06 IST