GDP drops by 1% in 2023

The volume of Finland's Gross Domestic Product (GDP) contracted by 1.0 per cent in 2023 from the previous year, according to Statistics Finland.

Finland's national economy went into recession in the second half of 2023.

The GDP dropped by 0.7 percent in October- December 2023 from the previous quarter.

Adjusted for working days, GDP was 1.8 per cent lower than one year ago.

According to preliminary data compiled by Eurostat, GDP in the EU area grew by 0.1 per cent in October to December 2023 from the previous quarter and by 0.5 per cent in the whole year from the year before.

In October to December 2023, the volume of exports decreased by 1.0 per cent from the previous quarter. The volume of imports declined by 1.5 per cent.

Private consumption remained on level with October to December 2023 but decreased by 0.9 per cent year-on-year.

Government consumption expenditure increased by 0.8 per cent in the fourth quarter of 2023 from the level in July to September.

Gross fixed capital formation, or investments, contracted in October to December 2023 by 1.5 per cent from the previous quarter. Private investments decreased but public sector investments grew.

News agency Xinhua adds: The recent figures are lower than expected, said Jukka Appelqvist, chief economist at the Finland Chamber of Commerce, on the social media platform X on Thursday.

"At the end of the year, GDP fell below the peak measured in 2019, before the start of the pandemic. More than four years have passed again without growth," wrote Appelqvist.