The chief executive of Nokia Oyj signaled that a near-term decline in operator demand for 5G gear in a worsening economy will turn out to be a passing phenomenon given a “substantial need” to invest in those networks globally.

Nokia on Thursday reiterated that challenges stemming from a deteriorating economic outlook and customers working through existing inventory intensified in the second quarter and are set to continue in the second half. It had made similar remarks last week when cutting its full-year guidance.