Finland

RGE's Q1 2010 Outlook

Finland’s economy benefited from strong export growth in the years before the global downturn, and the average annual growth rate exceeded 3% in 2004-2008. Finland’s GDP peaked in Q3 2008, and the seasonally adjusted figure has since contracted more than in any other Nordic country, even Iceland. The worst year-on-year contraction in a given quarter—9.4% in Q2 2009—was more severe than that experienced during the early 1990s recession. In 2009, the contraction will be close to 8%, largely driven by massive deterioration in exports in Q1 2009. The economy bottomed in summer 2009, but a return to the high growth rates earlier this decade is unlikely in the near future.

The drop in Finland’s exports during the recession, around a quarter, was the biggest in the euro area. Before the recession, exports accounted for...

Read the Q1 2010 Finland Outlook.