The number of companies filing for bankruptcy in Finland rose to the highest in 26 years last month as the slowdown in the Nordic economy puts a damper on business activity.

Finland recorded the highest number of July bankruptcies since 1997, with 224 companies becoming insolvent, Statistics Finland said on Monday. Construction industry and other service businesses had the most failed companies, it said.

This year’s tally so far is 1,864 instigated bankruptcy proceedings, higher than during any corresponding period in the last decade and “shocking” reading, according to Juhana Brotherus, chief economist at Suomen Yrittajat, an organization representing small and medium-sized enterprises in Finland.

The difficulties highlight the impact from “a prolonged weak economic situation” in the Nordic country, Brotherus said in a note, adding that he expects the year’s total to exceed 3,000 for the first time since 2013.

While the Finnish economy saw a mild pick up in growth during the second quarter, according to a flash estimate, forecasts are weak for the full year. The central bank has penciled in a “shallow recession” and a return to 0.9% growth in 2024, a view shared by many economists.

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