Denmark and Finland officially joined the ranks of recession-hit countries on Friday with the release of figures showing their economies contracting, while Sweden saw its economy sink further.
The Nordic countries' traditionally robust, export-driven economies were long believed to have escaped the worst effects of the global economic crisis.
But they are now struggling to overcome dramatic drops in demand from abroad, and in consumer confidence and industrial production at home.
Denmark, which became the first European country to enter recession last year after its economy contracted for two quarters running, briefly returned to growth in the second quarter of 2008 before falling back in the hole.
The Scandinavian country officially dived back into recession after its gross domestic product (GDP) contracted 2 per cent in the fourth quarter, according to numbers released by the national statistics agency. Its economy shrank by 0.8 per cent in the third quarter of 2008.
"Investments and private consumption fell clearly in the fourth quarter, while there was little increase in public spending. The fourth quarter was also impacted by large declines in both imports and exports," Statistics Denmark said.
"Denmark is perhaps experiencing its worst crisis since World War II," Anders Matzen, chief analyst at Nordea bank, told AFP. "But it is only natural that a small economy that is heavily dependent on exports finds itself in this position."
Finland meanwhile saw its fourth quarter GDP shrink 1.3 per cent after slipping 0.3 per cent in the previous three-month period, according to revised figures.
"Finland's economy can be considered as being in recession," said the national statistics office, which had previously said Finland's economy had grown 0.1 per cent in the third quarter.
"Demand in the national economy diminished in the last quarter: private consumption decreased by 1.2 per cent and investments by 2.1 per cent from 12 months back," Statistics Finland said. "Exports and imports contracted exceptionally strongly, by over 14 per cent."
Home to the world's largest mobile phone maker, Nokia, Finland for years enjoyed sky-high economic growth, with its GDP expanding 4.5 per cent in 2007.
Last year however, the Nordic country's economy grew just 0.9 per cent, according to the latest statistics.
Neighbouring Sweden's predicament is even more dire, with its economy plunging 2.4 per cent in the fourth quarter compared to the previous three-month period, according to data released by the national statistics bureau.
And compared to the fourth quarter of 2007 the figures are even worse, showing that Sweden's GDP plummeted 4.9 per cent in the last quarter last year.
Statistics Sweden spokeswoman Sofia Runestav also told AFP revised figures showed the country had in fact entered recession in the second quarter of 2008 and not in the third as previously stated.
Sweden, especially hard-hit by the troubles plaguing car makers worldwide, saw its exports fall 7.2 per cent, imports decrease 5.4 per cent, and industrial production shrink 6.1 per cent in the fourth quarter.
"We are in the midst of a long, cold and dark winter," Swedish finance minister Anders Borg said after the numbers were released. "Sweden is obviously experiencing a very dramatic economic slowdown."
Norway meanwhile said last week its economy as a whole grew 1.3 per cent in the fourth quarter, largely due to its position as one of the world's leading oil and gas exporters.
Excluding its oil, gas and shipping industries however, the country's mainland GDP tumbled 0.2 per cent during the period.
Recession has been predicted across the region for 2009.
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