Financial News: Finland Economy Sinks Into Deep Recession

Finland Economy Sinks Into Deep Recession

(RTTNews) - Finland's economy shrank for a third consecutive quarter in the three months to June and at a steeper rate, plunging into a deep recession propelled by the harsh impact of the coronavirus or Covid-19 pandemic.

Gross domestic product decreased 3.2 percent sequentially in the second quarter, preliminary estimates from Statistics Finland showed Friday.

The economy had entered a technical recession, which is two consecutive quarters of GDP decline, in the first three months of 2020.

GDP shrunk a seasonally adjusted 0.9 percent in the first quarter and 0.6 percent in the final three months of 2019.

On a working-day adjusted basis, GDP decreased 4.9 percent from a year ago.

The number of the employed decreased by around 3.2 percent and the hours worked fell by around 7.6 percent from last year.

Output of the national economy fell a working-day adjusted 4.8 percent year-on-year in June, following a 5.6 percent decline in May, which was revised from a 5.5 percent fall, the statistical office said.

The monthly indicator dropped for a fourth month in a row.

On a seasonally adjusted basis, output rose 0.9 percent monthly in June.

Data showed that the primary production increased around 4.0 percent in June. Secondary and services production declined by about 6.0 percent and 5.0 percent, respectively, from the previous year.

Seperate data from the statistical office showed that consumer prices rose 0.6 percent yearly in July, after remaining unchanged in June.

Prices of cigarettes, games of chance and refundable prescription medicines increased in July from one year ago.

The increase was curbed most by reductions in the prices of fuels and hotel rooms, and in average interest rate on housing loans, the agency said.

On a month-on-month basis, consumer prices grew 0.4 percent in July, following a 0.2 percent rise in the previous month.

The EU measure of harmonized index of consumer prices, or HICP, rose 0.3 percent monthly and gained 0.7 percent from a year ago.

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