(Bloomberg) — Finland’s struggling economy grew for a third straight quarter, in an upbeat signal that contrasted with analysts’ forecasts of another contraction for the full year.

Gross domestic product in the eurozone’s northernmost economy expanded by a seasonally adjusted 0.4% in the July-September period, after rising 0.3% in the previous quarter, according to a flash estimate by Statistics Finland on Thursday. GDP also rose 0.4 percent from a year ago, adjusted for business days.

The latest reading follows two consecutive quarters of weak growth in the Nordic economy, which has been one of the worst performers in Europe over the past two years. The growth in the third quarter contrasts with recent forecasts by forecasters, including the Finance Ministry, with Bloomberg estimates predicting a 0.4% decline this year.

“There are positive signs in the air as the Finnish economy has started to recover from the recession,” said Roope Ohlsbom, economist at Suomen Yrittajat, an organization representing small and medium-sized enterprises. Finland’s economic growth will continue to be supported by falling interest rates, low inflation and rising services exports for the rest of the year, Ohlsbom wrote in a note to clients.

The Finnish economy is expected to emerge next year from a crisis triggered by a trade freeze with Russia following the Kremlin’s full-scale invasion of Ukraine, along with sluggish demand from top trading partners Germany and Sweden.

Last week, the International Monetary Fund said it expected Finnish GDP to grow by 1.6 percent in 2025, driven by a partial recovery in private investment and consumption amid falling interest rates and stabilizing house prices.

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