13 February 1996
Same rate of growth in production last year as the year before
GDP grew by 4.4 per cent last year, in other words at the same rate as in 1994. Total output in real terms exceeded the 1988 level. This appears from the preliminary data of Statistics Finland.Changes in GDP 1988-95
The highest increase in production last year was in the metal industry, which grew by 20 per cent from 1994. Production in the pulp and paper industry was up by a mere two per cent, while the growth rate in the preceding two years was in the range of ten per cent. Production in agriculture fell by seven per cent. Housing construction, likewise fell but building construction, particularly industrial construction, rose.
Economic demand grew in addition to the eight per cent increase in exports also thanks to the growth in private final consumption expenditure, where there was a rise of almost five per cent. In government expenditure, instead, a rise of only a one per cent occurred. After an uninterrupted period of decline ever since 1990, investments were up last year by over nine per cent.
National income grew by over ten per cent in nominal terms, and amounted to 86 500 per capita last year.
The disposable income of households last year increased by 8.6 per cent in nominal terms and by 7.5 per cent in real terms. The fact that two tax rebates were paid last year contributed to this growth. Without the deferred tax rebates from 1994 real income would have amounted to five per cent. The final consumption expenditure of households grew by six per cent in nominal terms and the savings rate was 6.7 per cent.
The financial position of enterprises last year reached a surplus for the third year running, by FIM 25 billion. The operating surplus increased by 28 per cent.
The financial deficit of central government amounted to approximately FIM 54 billion, which is four billion less than the year before. The financial deficit of general government in total was about FIM 31 billion, i.e. 5.6 per cent of GDP, while the year before the corresponding figure was 6.3 per cent .
There was an increase of 6.9 per cent in the sum of wages and salaries last year. Gross operating surplus increased by about eleven per cent.
The tax rate fell to 45.7 per cent last year, while the year before it was 47.3 per cent.
The 1995 current account reached a surplus of FIM 19 billion. As the export prices rose and the import prices remained stable, the terms of trade improved by seven per cent.
Source: National Accounts Preliminary Data, 1995.
For further information, please contact: Mr Tuomas Rothovius,
tel. +358 0 1734 3360, or Mr Olli Savela, tel. +358 0 1734
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