Finland’s economy has entered recession after two consecutive quarters of contraction, dashing hopes of a late‑year recovery, according to data released by Statistics Finland.
Gross domestic product fell 0.3 percent in July–September compared with the previous quarter, following a 0.2 percent decline in April–June.
The first quarter of 2025 showed no growth.
The downturn meets the technical definition of recession, last seen in autumn 2023.
Exports have grown 3–5 percent since early 2024, but domestic demand remains weak, accounting for about three‑quarters of GDP and 80 percent of jobs.
Consumer and business uncertainty, combined with government spending cuts, have weighed heavily on growth.