Finland’s economy contracted on a monthly basis in May after growing sharply in April, data from Statistics Finland showed Wednesday.

The national statistics agency said seasonally adjusted gross domestic product fell 2% in May from April, putting the working day-adjusted annual rate of growth at 0.2%.

GDP grew 1.2% on the month and 8.1% on the year in April, boosted by more working days as Easter fell in March this year compared with April in 2007.

Primary production, which includes agriculture, forestry and fishery declined just under 14% in May on the year, while secondary production, such as manufacturing and construction, increased around 5%.

Services, such as trade, restaurants, transport and real estate, fell just short of a 2% annual rise in May, Statistics Finland said.

The finance ministry said in its budget proposal released in late July that “after a sustained period of strong growth, the Finnish economy is rapidly losing steam in the wake of the slowdown of the global economy.”

“The sharp rise in inflation has eroded confidence in economic development, and output growth in 2009 is expected to fall back to 2%.”

Growth was 4.4% in 2007 and 4.9% in 2006. In the first quarter of 2008, annual growth was 2.8%.

Source: http://www.djnewswires.com/eu

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