BBC: Finland in "double dip" recession

[Eldritch]

Finland's economy slipped back into recession during the first three months of 2010, official figures have shown.

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

It is the first eurozone country to re-enter recession after emerging from it, in what is known as a double-dip.

Finland, whose main exports include paper and Nokia mobile phones, was hit hard by the downturn in global trade.

However, official figures, also released on Thursday, showed that its exports have since recovered.

The country's exports rose 7% from a year earlier to 4.4bn euros ($5.3bn; £3.6bn) in April, the biggest growth since November 2008.

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

A report last year by the World Economic Forum said Finland had the world's sixth most competitive economy.

Finland's economy had previously contracted for four quarters in row, covering the period from April 2008 to 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.

Along with Luxembourg, Finland is the only eurozone country to have stuck to EU fiscal rules requiring it to keep its government deficit below 3% of its GDP and its debt under 60% of GDP.*

Eurostat figures say its debt was 44% of its GDP in 2009.

Link. (http://news.bbc.co.uk/2/hi/business/10272574.stm)

*Holy sheets--t! Does this mean other €uro countries have been even more irresponsible than we have ?!?

[poiuytrewq0987]

I don't think even Germany is adhering to the Maastricht criteria. If the criteria was enforced, Finland would be the only member of the EU. I believe that financial hard times are always inevitable, I don't really see a point in the all fearmongering. The economy will eventually recover, but when? That's the question. However to act like the economy will never recover, and to treat it like it is the end of the world... is just irritating.

[Äike]

I don't think even Germany is adhering to the Maastricht criteria. If the criteria was enforced, Finland would be the only member of the EU. I believe that financial hard times are always inevitable, I don't really see a point in the all fearmongering. The economy will eventually recover, but when? That's the question. However to act like the economy will never recover, and to treat it like it is the end of the world... is just irritating.

That's false. For example, Estonia is following the Maastricht criteria perfectly. If everyone would follow the Maastricht criteria, then the Eurozone wouldn't be in this mess.

[poiuytrewq0987]

That's false. For example, Estonia is following the Maastricht criteria perfectly. If everyone would follow the Maastricht criteria, then the Eurozone wouldn't be in this mess.

Okay, I'm sorry for forgetting to include Estonia. :P

[ikki]

Estonia is not in the eurozone... not yet, anyways. And who knows, they just might end up not wanting to shell out the billions demanded...

Anyways, had a chat around the euroelections with some of the candidates re the vast loans being taken. And got from them a confession that if the economy does not starty to pick up the same year, finland will not be able to repay the loans.
And naturally the measures had to fail, as keynesism has never been known to function in a free-market economy, only in one in war and having cupons and rations.

[The Ripper]

I don't think even Germany is adhering to the Maastricht criteria. If the criteria was enforced, Finland would be the only member of the EU. I believe that financial hard times are always inevitable, I don't really see a point in the all fearmongering. The economy will eventually recover, but when? That's the question. However to act like the economy will never recover, and to treat it like it is the end of the world... is just irritating.

I think it would be a mistake to assume that we are going to experience the same kind of economic "growth" that we have in the past decade ad infinitum.

[Agrippa]

A state and its politicians have to care for the well being of the citizens and group of people, in the current situation, if you primarily care for the deficit and stabilisation of the currency in a monetaristic-Neoliberal fashion, you ruin your people even more.

The real problem is the financial system as such, in which the state has to pay interest for its own money rather than giving out interest-free. This is a direct transfer of wealth and power from the people and state to the bankers, what is the real issue.

Estonia worked hard for the criteria, but at a high price as well and once in the Euro, it might feel the bad effects quite drastically.

We'll see.