The economy | Finland’s economy shrank in the third quarter – “That’s how it starts, a recession,” says the economist

Finland the economy seems to have turned to decline in the third quarter, which some economists estimate is a sign of a technical recession.

According to the preliminary data released by Statistics Finland on Tuesday, Finland’s seasonally adjusted gross domestic product (GDP) decreased by approximately 0.1 percent in the third quarter from the previous quarter. Still in April–June, GDP grew by 0.9 percent.

According to the working day-adjusted series, Finland’s GDP in July–September was 1.7 percent higher than the corresponding quarter of the previous year.

The data is based on preliminary data from the production cycle graph. Statistics Finland will specify the figures on November 30.

Part economists fear that the Finnish economy has continued to contract in the current quarter as well. A technical recession is generally defined as a situation in which the gross national product falls in two consecutive quarters.

“That’s how it starts, a recession. According to preliminary estimates, Finland’s GDP fell slightly from the previous quarter in the third quarter. The reading is better than could have been feared, but an additional decrease can be predicted with the coming of winter”, says Danske Bank’s chief economist Pasi Kuoppamäki on Twitter.

OP’s chief economist Reijo Heiskanen considers that it is not worth “living” with the recession yet. According to him, Finland’s economic growth will slow down “pretty much” in line with expectations.

“The average growth at the beginning of the year is about 2.9 percent, so we are slightly faster than the forecasts. It’s not worth living through a recession just yet. When it comes, we will know,” Heiskanen writes on Twitter.

Also the chief economist of Akava, the labor market center organization for those with higher education Pasi Sorjonen urges to wait for more detailed GDP figures.

“Recession already started? Vaisu’s number fits well with the lousy confidence numbers. It’s still worth waiting for the actual advance information and information about sublots to be published in a couple of weeks,” Sorjonen said on Twitter.