The Finnish economy has entered a recession, after chaining two consecutive quarters of falls in Gross Domestic Product (GDP). The coronavirus crisis, with the subsequent restrictions on business and people's movement, has taken a high toll, particularly with a large drop on exports.
Statistics Finland's preliminary data show that the volume of the country's GDP decreased by 0.9% in January to March from the previous quarter. Compared with the first quarter of 2019, GDP adjusted per working days fell by 1.1%.
This is the second consecutive quarterly drop in GDP, which in general economic terms means that the country is in recession. The revised data by the statistical agency also shows that in the last quarter of 2019 the Finnish economy contracted by 0.6% from the previous.
Drop in exports
In the first quarter of 2020, the volume of exports fell by 7.4% from three months before and by 8.5% year-on-year. Imports decreased by 3.5% from the previous quarter and by 4.1% from the same period of 2019.
Private consumption withstood the hit of the pandemic a little better and contracted by 0.6% from the previous quarter but grew by 0.1% from twelve months back. Gross fixed capital formation (investments) fell by 0.5% from the previous quarter and by 1.4% year-on-year.
