HELSINKI, Dec 31 (Reuters) - Finnish industry output shrank the most in 17 years in November as the global economic slowdown walloped all sectors, data showed on Wednesday.
Industrial production adjusted for working days sank 10.1 percent year-on-year in November, Statistics Finland (SF) said, the sharpest drop since an 11.2 percent plunge in November 1991 when Finland was deep in recession.
Output fell in all main industries, led by a 17.8 percent plunge in the wood and paper sector and a 13.4 percent drop in manufacturing. Output fell least, 2.9 percent, in the electronic and electrical goods sector.
Separately, SF said bankruptcies in November spiked 27 percent year-on-year to 246.
The data were the clearest sign yet of the global economic slowdown's impact on the Nordic country, one of the European Union's soundest economies.
Finland's economy grew at a robust pace the past two years, with gross domestic product up 4.9 percent 2006 and 4.5 percent last year, but ground to a halt in the third quarter as the slowdown hit exporters and Finns' confidence started to falter.
Wednesday's data follows gloomy December consumer and industry confidence numbers from Monday, with Finnish consumer expectations regarding unemployment and the economy at their lowest levels since 1987, when SF started the survey.
The Finance Ministry said this month the economy would contract next year for the first time since 1993, and a turn for the better could only come in late 2009 at the earliest. Like other governments, Finland plans to spend more next year and will also cut taxes to try to stimulate its economy.
Economists have said despite the grim near-term outlook, Finland looks set to weather 2009 relatively well, helped by a government stimulus package, lower interest rates and already agreed pay rises. (Editing by Mike Peacock)