Finland Entered Recession in Late 2022, Flash Estimate Indicates

Finland’s economy contracted for a second consecutive quarter in the final three months of 2022, signaling the Nordic nation may already be in a recession.

(Bloomberg) — Finland’s economy contracted for a second consecutive quarter in the final three months of 2022, signaling the Nordic nation may already be in a recession. 

Gross domestic product contracted a seasonally adjusted 0.2% in the fourth quarter from the prior three-month period, Statistics Finland said on Tuesday, citing a flash estimate. Economic output was 0.1% lower than a year earlier, adjusted for the number of working days.

Accelerating inflation and ensuing sharp increases in interest rates are hurting growth across Europe, which is weighing on Finland’s export-oriented economy. Rapidly rising prices will also hit private consumption, removing a key driver that’s supported growth during previous downturns. 

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