Finland’s economic output contracted for the second consecutive month in June, data from Statistics Finland showed Thursday.

Finnish seasonally adjusted gross domestic product fell 1.5% on a monthly basis and was 0.2% lower on the year in June.

Output in May fell 1.1% on the month and was 1.5% higher on the year.

The national statistics agency said secondary production, such as manufacturing and construction, increased “a good 3% from June of the previous year,” while primary production, which includes agriculture, forestry and fishery, declined 9%.

Services, such as trade, restaurants, transport and real estate, declined “just short of 2%.”

Finland’s 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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