HELSINKI: Finland slipped into recession in the third quarter as the euro zone debt crisis dented demand for exports from one of its smallest and most secure economies, data showed on Wednesday.
Gross domestic product ( GDP) fell 1.2 per cent year-on-year in the third quarter, after a revised fall of 0.3 per cent in the second quarter, Statistics Finland (SF) said.
Finland is one of four remaining euro zone states with top-ranking triple-A ratings from all three credit agencies. The Nordic economy is dependent on exports, led by the machinery and metal sector, followed by forestry products and phones and other electronics.
Exports fell 1.8 per cent in the third quarter from a year ago. Investments shrank by 4.4 per cent. Pasi Sorjonen, senior analyst at Nordea, said the slip into recession has not been a big surprise and said he expected a gradual recovery of the Finnish economy to begin next year.
"We predict that the economy is about to reach the bottom and that we begin a gentle upward climb," Pasi Sorjonen, senior analyst at Nordea, said.
Nordea forecast Finland's gross domestic product to grow 0.5 per cent this year and 1.0 per cent in 2013. Sorjonen said the pick-up is based on the assumption that exports will start to increase and the euro area's debt crisis will not again worsen.
Mobile phone maker Nokia, the driver of Finnish economic growth in the late 1990s and early 2000s, has lost market share in recent years against Apple and Google .
This has led to production and job cuts in Finland and Europe, and Nokia has been moving much of its business to Asia.
The paper industry has also for years been struggling to cope with decreasing demand and weak profitability in Europe and has closed down mills in Finland.
indiatimes.com
Gross domestic product ( GDP) fell 1.2 per cent year-on-year in the third quarter, after a revised fall of 0.3 per cent in the second quarter, Statistics Finland (SF) said.
Finland is one of four remaining euro zone states with top-ranking triple-A ratings from all three credit agencies. The Nordic economy is dependent on exports, led by the machinery and metal sector, followed by forestry products and phones and other electronics.
Exports fell 1.8 per cent in the third quarter from a year ago. Investments shrank by 4.4 per cent. Pasi Sorjonen, senior analyst at Nordea, said the slip into recession has not been a big surprise and said he expected a gradual recovery of the Finnish economy to begin next year.
"We predict that the economy is about to reach the bottom and that we begin a gentle upward climb," Pasi Sorjonen, senior analyst at Nordea, said.
Nordea forecast Finland's gross domestic product to grow 0.5 per cent this year and 1.0 per cent in 2013. Sorjonen said the pick-up is based on the assumption that exports will start to increase and the euro area's debt crisis will not again worsen.
Mobile phone maker Nokia, the driver of Finnish economic growth in the late 1990s and early 2000s, has lost market share in recent years against Apple and Google .
This has led to production and job cuts in Finland and Europe, and Nokia has been moving much of its business to Asia.
The paper industry has also for years been struggling to cope with decreasing demand and weak profitability in Europe and has closed down mills in Finland.
indiatimes.com
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