29 February 2000
Inquiries: Mr Tuomas Rothovius +358 9 1734 3360, Mr
Olli Savela +358 9 1734 3316
General Government Deficit and Debt: Ms Paula Koistinen-Jokiniemi
+358 9 1734 3362 skt.95@stat.fi
Director in charge: Mr Markku Suur-Kujala
Gross domestic product grew by 3.5 per cent in 1999
According to Statistics Finland's preliminary data, Finnish GDP grew by 3.5 per cent in volume in 1999. Total output has now been growing continuously since 1994. Finland's gross domestic product, i.e. the total value added of the goods and services produced, was FIM 718 billion last year.
National income increased by 4.7 per cent in nominal terms and amounted to FIM 113,600 per capita last year.
GDP was increased most by the growth of output in manufacturing, which amounted to 5.4 per cent. Output in the metal industry increased by 10 per cent, thanks to the rapid growth in the electrical and electronics industry. In the wood and paper industry output was up by 3.4 per cent compared to a year earlier.
Construction increased by 4.8 per cent, residential building construction more than other construction. Real estate and other business activities increased by 7.8 per cent last year. The only industry with a notable reduction in the value added was financial intermediation and insurance.
Demand in the national economy hinged strongly on exports and private consumption and investments last year. Exports grew by 7 per cent and imports by 3.3 per cent in volume. Private final consumption expenditure went up by 2.8 per cent and private investments by 7 per cent last year. Against this, government expenditure grew by only 0.3 per cent and government investments decreased by 6.3 per cent.
The financial position of enterprises showed a surplus, albeit a smaller one than in 1998. The net lending of enterprises amounted to FIM 19 billion, while in the year before it totalled just under FIM 24 billion. Enterprises' operating surplus remained at the previous year's level. Enterprises' financial position was weakened by a good eight per cent increase in fixed investments.
Households' real income continued to grow
The disposable income of households grew by 5.8 per cent in nominal terms and by four per cent in real terms. The growth in the income was above all attributable to an increased wage sum which ensued a risen earnings level and an improved employment situation. The increase in the wage sum was also due to job-related share options which accounted for FIM four billion of the wage sum as against FIM one billion in the year before. Social security benefits received by households grew by two-and-a-half per cent in nominal terms.
In nominal terms, the final consumption expenditure of households grew by 4.6 per cent, i.e. slightly less than their disposable income. The savings rate went up to 5 per cent. In the year before last it was 3.9 per cent.
General government surplus 2.3 per cent of GDP
The financial deficit of central government was good FIM 4 billion last year, having been FIM 10 billion in the year before. The deficit contracted mainly due to increased tax revenues. The revenues from indirect taxes grew by five per cent and those from direct taxes by 2.5 per cent. Final consumption expenditure only grew by one-and-a-half per cent and investments decreased slightly.
The financial position of local government showed a slight deficit for the third consecutive year at approximately FIM two billion. The financial surplus of social security funds amounted to FIM 22 billion, which is slightly up on the year before.
The total net lending of general government, or EMU surplus, was FIM 16 billion, and was 2.3 per cent of GDP compared to 1.3 per cent last year. The gross debt of general government, or so-called EMU debt, was 47,1 per cent of GDP.
Sources: National Accounts Preliminary Data, 1999.
Statistics Finland
General Government Deficit and Gross Debt According to EMU
Criteria. Statistics Finland.