Business

Finland back in recession despite trade surplus

06:09 am on 10 June 2010

The economy of Finland slipped back into recession during the first three months of 2010.

During the January to March quarter, the economy contracted by a seasonally-adjusted 0.4%, after a decline of 0.2% in October to December of last year.

The BBC reports it is the first member of the eurozone to re-enter recession after emerging from it, in what is known as a double-dip.

However, official figures issued on Thursday showed that its exports have recovered from the downturn in global trade.

Finnish exports rose 7% from a year earlier to 4.4 billion euros ($US5.3 billion) in April - the biggest growth since November 2008.

This resulted in Finland reporting a trade surplus of 355 million euros, its first for six months.

The Finnish economy previously contracted for four quarters in row, covering the period from April 2008 - June 2009. The economy then grew by 0.5% in the third quarter of 2009.

A country is generally considered to be in recession following two consecutive quarters of economic contraction.