Finnish GDP Indicator Signals Deepening Economic ContractionSaleha Mohsin
Finland’s economic contraction is deepening as the northernmost euro member struggles to withstand the bloc’s debt crisis, indicator data show.
Adjusted for working days, gross domestic product shrank 4.2 percent in April, the most since December 2009, Statistics Finland said, citing a monthly trend indicator. The economy contracted 1 percent in March, revised from a 0.4 percent drop, the agency said.
Finland, where exports account for about a third of output, is hurting amid falling demand from the euro area, which is shrinking for the second year as austerity policies erode spending. Domestic demand in Finland, home to struggling mobile phone maker Nokia Oyj, is failing to compensate as unemployment rises. Unemployment jumped to 10.8 percent in May, a report last month showed.
The monthly indicator showed Finland’s economy has contracted for six consecutive months.
Gross domestic product, seasonally adjusted, contracted 0.1 percent in the first quarter after shrinking a 0.7 percent at the end of 2012, the agency said last month. The economy also stalled in the third quarter, after being revised from 0.1 percent growth, the agency said.