GDP did not grow in the second quarter of 2001

In the second quarter of 2001 Finland's gross domestic product was only 0.3 per cent greater than in the same quarter of 2000. Compared to this year's previous quarter, GDP contracted. Finnish economy has been growing continuously from the latter part of 1993 until the spring of this year. This is indicated by the preliminary National Accounts data compiled by Statistics Finland.

Growth continued in the service industries, but primary production and processing industries contracted from twelve months earlier. Output in the metal industry contracted by 5 per cent in the second quarter of the year. In the wood and paper industry, output fell by one per cent when compared to the corresponding quarter of 2000, even despite the fact that the quarter then coincided with a strike in the industry. Real estate and business activities increased by 4 per cent, and construction and trade output by one per cent.

Households' final consumption expenditure grew by good one per cent. The growth was slowed down by one-fifth drop in new car purchases. Imports fell by 4 per cent and exports by good 2 per cent. Investments in machinery, equipment and transport equipment contracted by one per cent although among these investments in machinery and equipment increased by 1.5 per cent.

In the second quarter of the year, the wages and salaries bill of the national economy was 7.2 per cent greater than twelve months earlier. Over the same time period, enterprises' operating surplus contracted by 3 per cent.

According to the preliminary data of Eurostat, the Statistical Office of the European Communities, gross domestic product increased by 1.7 per cent in the EU area in the second quarter of 2001 when compared to the same period of the year before.

The gross domestic product includes all the goods and services produced during the quarter concerned. Change in the amount, or volume, of the GDP refers to a value from which the effect of deterioration in the value of money, i.e. inflation, has been removed.

Source: National Accounts 2001, 2nd quarter. Statistics Finland