Finland enters deep recession: GDP shrinks 1.4% as household spending plummets

Finland is now officially in recession. The Nordic country’s GDP fell by 1.4% in 2023, marking its worst economic downturn since the 2008 financial crisis, according to official national statistics.

Household consumption dropped by 0.7%, while industrial output plunged 4.7% over the year — revealing the extent of the slowdown affecting even well-developed European economies.

Experts blame a mix of rising inflation, higher interest rates and global trade tensions for weakening internal demand and corporate investment.

As reported by MoneyTimes, Finland has entered a technical recession, with two consecutive quarters of negative growth — a trend that could spill over to neighboring countries.

Key numbers

• Household consumption: -0.7% year-on-year;
• Industrial production: -4.7% in 2023;
• Exports: declining due to weaker global demand.

By the way, even the most stable economies are vulnerable to global cycles. Finland’s downturn is a clear signal.