22 September, 1998

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

GDP up by 4.9 per cent in the second quarter

Finland's gross domestic product for the April to June quarter of 1998 grew by 4.9 per cent compared to the corresponding period in 1997. The annual growth was 6.8 per cent in the January to March period. There were two fewer working days in the second quarter and two more in the first quarter than in the previous year because Easter fell on the second quarter. From the first half of 1997 to the first half of 1998, gross domestic product has increased by 5.8 per cent, as indicated by the preliminary data on National Accounts compiled by Statistics Finland.

In the April to June period, output volume continued to grow rapidly in the metal, wood and paper industries. Output in the metal industry went up by 11 per cent and in the wood and paper industry by almost 7 per cent. Output in building construction has been undergoing a brisk growth throughout the first half of this year, up by 7 per cent on the previous year in the second quarter. Growth in transport has also continued fast. Output in transport was up by 6.4 per cent in the second quarter.

In the April to June period, output in mining and quarrying contracted considerably, primarily due to difficulties in peat harvesting caused by the rainy early part of the summer. Output in agriculture also declined by good 4 per cent.

Private consumption went up by 4.4 per cent in the second quarter. Consumers were especially interested in durable consumer goods, such as cars and goods related to home decoration and free-time.

Investments in construction continued to grow in the second quarter of the year, up by good 8 per cent. Investments in equipment and machinery went up by good 4.5 per cent in the first half of the year.

The rise in exports and imports that had been growing strongly in the first quarter levelled off in the second quarter of the year. Imports went up by 6.1 per cent and exports by 5.4 per cent on the previous year.

The wages and salaries bill of the national economy grew by 6.8 per cent and the operating surplus by 12.2 per cent in the April to June period this year compared to the same period last year.

Source: National Accounts 1998, 2nd quarter. Statistics Finland