GDP contracted in the first quarter

In the first quarter of 2002 the volume of Finland's gross domestic product contracted by 0.6 per cent from the end of 2001. Compared to the first quarter of 2001, GDP contracted by 2 per cent, but in the comparison quarter of last year GDP was, in fact, at an all-time high. This is indicated by the preliminary National Accounts data compiled by Statistics Finland.

GDP at market prices by quarter calculated at 1995 prices

Economic growth has been curbed by declining investments and falling exports. In the first quarter, investments were down by 6 per cent year-on-year. Exports fell by 4 per cent and imports by 6 per cent. In contrast, households' final consumption expenditure grew by over one per cent. The growth of expenditure was curbed by reduced energy consumption due to the mild winter.

Growth in the service industries slowed down to one per cent, and primary production and processing industries contracted from twelve months back. In the first quarter of 2002, output declined by 10 per cent in the metal industry and by 4 per cent in the wood and paper industry. Output in construction decreased by 3 per cent.

In the first quarter of the year, the wages and salaries bill of the national economy was 2.9 per cent greater than twelve months before. Enterprises' operating surplus decreased by 8 per cent over the same time period.

According to the preliminary data of Eurostat, the Statistical Office of the European Communities, gross domestic product increased by 0.2 per cent in the EU area in the first quarter of 2002 when compared to the same period of the year before.

Demand and supply of national economy 2002, 1st quarter, changes in volume from previous year's corresponding quarter and from previous quarter, per cent

cellspacing="0" cellpadding="2"

	Change from previous year's corresponding quarter, %	Change from previous quarter, %
Gross domestic product	-2.0	-0.6
Imports	-6.1	-1.0
Exports	-4.2	-4.3
Consumption	+1.5	0.0
Investments	-5.6	0.0

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. Change from the previous quarter is calculated from seasonally adjusted data.

Seasonally adjusted GDP refers to a value from which the effect of annually occurring regular seasonal variation caused by holiday periods, seasonal weather, etc., has been removed. Seasonally adjusted series become revised as new observations become available. The data on the last quarter, in particular, should be viewed with caution, as new observations especially at turning points of economic development may alter seasonally adjusted figures significantly.

Source: National Accounts 2002, 1st quarter. Statistics Finland