Finland slips back into recession

Jun 10 2010 by Iain Laing, The Journal

FINLAND'S economy has fallen back into recession during the first three months of this year despite a recovery in its export trade.

During the January to March quarter its economy contracted by a seasonally-adjusted 0.4%, after a decline of 0.2% in October to December last year.

The country, whose main exports include paper and Nokia mobile phones, was badly hit by the global economic downturn, but official figures showed that its overseas trade has risen by 7% from a year earlier to £3.6bn in April, the biggest growth since November 2008. This means that Finland reported a trade surplus of 355m euros, its first for six months.

A World Economic Forum report last year said Finland had the world’s sixth most competitive economy. Its economy had previously shrank for three quarters in row, from October 2008 to June 2009, and then grew in the third quarter of 2009.

A country is said to be in recession following two consecutive quarters of economic contraction.