GDP up by one per cent in January-March

Finland's gross domestic product for the January-March period grew by one per cent compared to the corresponding period of the year before. The structure of growth changed, so that growth was sustained by service industries in January-March, while the slowdown in the growth rate was attributable to extractive industries. The impact of processing industries on GDP growth was neutral. Adjusted for seasonal variation, GDP for the first quarter grew by 0.7 per cent on the figure for the previous quarter. In the last quarter of 1995 the seasonally-adjusted GDP was down by 0.3 per cent.The figures are based on the preliminary data on National Accounts compiled by Statistics Finland.

Changes in the volume of gross domestic product by quarter
change-% on the corresponding period of the year before

Figure 1.

Examined by economic activity, energy supply showed the greatest increase in production in January-March; output grew by seven per cent. The growth in the metal industry slowed down to six per cent. Output in the wholesale and retail trade increased by three per cent. Production in local government grew by five per cent due to strikes in the comparison period, i.e. the January-March period of 1995.

Output in the wood and paper industry fell by as much as nine and a half per cent due to production stoppages. In forestry, fellings decreased by fifteen per cent. The figures for construction also fell by close on six per cent.

Investments remained at the level of 1995, while in residential construction they decreased by a quarter. Private consumption increased by a good three per cent. The increase was still greatest in durable consumer goods, in particular in the purchases of cars and electrical equipment and household appliances. Travel abroad also increased in the January-March period, although not as much as in 1995.

The amount of wages and salaries of the national economy increased by close on seven per cent in January-March. Operating surplus increased by four per cent.

Source: National Accounts, 1st quarter 1996
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