GDP up by four per cent in first quarter of 1997

Finland's gross domestic product for the January-March quarter grew by four per cent on the figure for the corresponding period in 1996, as indicated by the preliminary data on National Accounts compiled by Statistics Finland. Adjusted for seasonal variation GDP decreased by 0.4 per cent in the first quarter compared to the previous quarter.

Changes in the volume of gross domestic product by quarter
change on the year before, %

GDP was up in nearly all branches of industry in the January-March period. The only activity that saw a decline in output was land and water construction. Central government services, in turn, remained on the level of the year before.

The highest increase in output in the first quarter was in building construction, which grew by over 14.5 per cent compared to the corresponding period of the year before. Growth in the wood and paper industry amounted to over 12 per cent, while that in forestry was up by close on 8 per cent due to fellings picking up. Growth in the entire manufacturing industry amounted to a mere 4 per cent. There were four working days less in the first quarter compared to the year before.

Output in transport and communications increased by 8 per cent in January-March thanks to the good development in exports. Output in trade and commerce grew by a good 1.5 per cent. The fact that there were less shopping days this year than the year before also had an effect on the amount of sales. Local government services increased by 3 per cent, whereas central government services remained unaltered.

Investments were up by just under 3 per cent in the first quarter. Investments in the construction of residential buildings increased particularly rapidly, by 27 per cent. Private final consumption expenditure also grew by close on 3 per cent. The greatest increase was in durable consumer goods, in particular in the purchases of cars and household appliances.

The sum of wages and salaries of the national economy increased by just under one per cent in the January-March period. Operating surplus increased by 4.5 per cent.

Source: National Accounts, 1st quarter 1997
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