Production reached the pre-recession level last year

The volume of Finland's gross domestic product grew by 3.2 per cent last year, as indicated by the preliminary data on National Accounts compiled by Statistics Finland. Production reached the level of the peak years of 1989 and 1990 before the recession. GDP in nominal terms amounted to FIM 569 billion in 1996.

The highest increase in production last year was in energy and water supply, up by almost ten per cent. Production of electricity was increased by exceptionally large exports to Sweden during the summer and autumn of 1996.

Output in the metal industry grew by just under six per cent, whereas output in the wood and paper industry fell by two and a half per cent due to prolonged stoppages throughout the year. Output in the entire manufacturing industry grew by close on three per cent.

As in the wood and paper industry, output also decreased in forestry, where the fall amounted to eleven per cent. Central government services were also down, by over two per cent.

The growth in economic demand rose quite steadily: government expenditure grew by just under three per cent, private final consumption expenditure by three and a half per cent, exports by close on four per cent and investments by a good five per cent.

National income grew by five per cent in nominal terms, giving a per capita figure of FIM 89 700 for 1996.

The wage and salary bill of the national economy increased by 5.7 per cent last year. The disposable income of households grew by 2.7 per cent in nominal terms and by 1.5 per cent in real terms. The final consumption expenditure of households increased by 4.8 per cent in nominal terms, i.e. more than the disposable income. As a result, the savings rate fell to 3.7 per cent.

The financial position of enterprises reached a surplus for the fourth year running. The financial surplus amounted to FIM 17 billion last year, while in 1994 and 1995 respectively the corresponding figure was as much as FIM 28 billion. The operating surplus of enterprises was estimated to have decreased by one per cent.

The financial deficit of central government was approximately FIM 40 billion last year, i.e. FIM 13 billion less than the year before. The deficit decreased primarily due to increased tax revenues. The financial deficit of general government as a whole amounted to just under FIM 15 billion, i.e. 2.6 per cent of GDP.

The tax rate, i.e. the share of taxes and compulsory social security contributions of GDP, amounted to 48.8 per cent last year, while the year before it was 46.5 per cent.

The 1996 current account reached a surplus of over FIM 19 billion. Import prices rose by two per cent and export prices by one per cent, which means that the terms of trade fell by one per cent.

Source: National Accounts Preliminary Data, 1996. Statistics Finland
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