Updated February 29th, 2024 at 16:02 IST

Finland slides back into recession as GDP drops in late 2023

GDP in Finland fell by 0.7% in Q4 2023, continuing a trend from Q3 with a 1.1% decline.

Reported by: Business Desk
Finland flag | Image:Unsplash
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Finland enters recession: Finland has once again entered a recession in the latter part of 2023, according to the latest report from the national statistics agency. The decline in GDP, which amounted to 0.7 per cent from the previous quarter between October and December, follows a similar downturn of 1.1 per cent in GDP during July-September.

This setback comes after a brief period of growth, marked by a 0.4 per cent increase in the second quarter of 2023, after the recession experienced towards the end of 2022.

Key sectors such as electronics, forestry, and hospitality have been particularly hard hit by the economic downturn, while finance and insurance emerged as the sole industries to witness notable growth, as outlined by the statistics agency.

The Finnish central bank, in its December projections, anticipates continued strain on the economy in the coming year due to factors such as elevated interest rates and inflation, reduced investments, and overall uncertainty. However, it holds optimism for a potential recovery, expected to commence towards the latter part of 2024.

(With Reuters Inputs)

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Published February 29th, 2024 at 13:00 IST