23 June, 1998

Inquiries: Mr Erkki Lääkäri + 358 9 1734 3355
Statistical Director in charge: Mr Markku Suur-Kujala

Strong growth of GDP continues in the first quarter of 1998

Finland's gross domestic product for the January to March quarter grew by 6.4 per cent compared to the corresponding period in 1997. Adjusted for seasonal variation, GDP increased by 0.6 per cent on the previous quarter. In the last quarter of 1997, seasonally adjusted GDP grew by 1.2 per cent. This appears from the preliminary data on National Accounts compiled by Statistics Finland.

The growth of GDP was still sustained by the brisk development of exports. In the first quarter, the exports of goods and services increased by about 18 per cent in comparison to the corresponding period last year. Rapid recovery continued in the domestic markets. Private consumption grew by just under 4 per cent. The biggest increases were recorded in the purchases of durable consumer goods, especially of cars, and electrical and household appliances. Investments grew by good 3.5 per cent, investments in housing construction by 9.5 per cent.

In the January to March period, the greatest increases in output volume occurred in the metal industry, up by 17.5 per cent. Growth was particularly rapid in the manufacture of electrical equipment, which went up by 35 per cent from last year. Output in the wood and paper industry also grew strongly in the first quarter, up by 10 per cent. Construction grew by almost 9 per cent, trade and transport by about 8.5 per cent.

The fact that Easter fell on the second quarter also contributed to brisk growth in the first quarter as there were two more working days in the January to March period than in the same period last year.

Along with favourable economic growth, operating surplus grew by good 18 per cent and the wages and salaries bill of the national economy by over 7 per cent.

Source: National Accounts 1998, 1st quarter. Statistics Finland