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Finland’s economy contracted more in the fourth quarter than a flash estimate had indicated, affirming that the Nordic nation has entered a recession.
Gross domestic product (GDP) shrank 0.6% last quarter from the previous three-month period, when it contracted a revised 0.1%, Statistics Finland said. A flash estimate had indicated a 0.2% decline in output.
GDP was stagnant compared with a year earlier, adjusted for the number of working days.
Finland’s export-oriented economy is suffering from fast inflation and sharp increases in interest rates, which are expected to keep weighing on the Nordic nation’s outlook this year.
Rapid increases in prices are hurting consumption — a key driver of economic growth during previous downturns.
Economists have forecast a mild recession this year before a rebound in 2024. The decline in the fourth quarter was led by exports, investments and consumption, which all contracted, the statistics office said.