23 December, 1998

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

Strong growth in GDP continued in the third quarter

Finland's gross domestic product for the July to September quarter of 1998 grew by 4.8 per cent compared to the corresponding period in 1997, while in the first half of the year it increased by 6 per cent. In the January to September period, gross domestic product went up by 5.6 per cent. This appears from the preliminary data on National Accounts compiled by Statistics Finland.

The metal industry accounted for good two per cent of the 4.8 per cent growth in GDP, its output being up by over 17 per cent. Output in building construction increased by almost 8 per cent on the year before. Output in transport went up by 6 per cent and in trade by nearly 8 per cent. In the July to September period, output in the wood and paper industry slowed down to good 3.5 per cent. The grain crop of the rainy summer contracted by one third compared to last year, for which reason output in agriculture fell by almost 20 per cent. Energy production was smaller because output in the wood and paper industry levelled off.

Growth in exports halted in the July to September period: exports went up by only under one per cent, while growth in the early part of the year was almost 13 per cent. In contrast, imports continued to grow strongly, up by almost 8 per cent on the previous year.

Economic growth was sustained by domestic demand. Private consumption went up by as much as 6.5 per cent in the third quarter. There has been a steep rise in households' purchases of cars, electrical and household appliances, and electronics, in particular. The sales of other household goods and clothes were also brisker than last year.

Investments in equipment and machinery went up by over 12 per cent in the third quarter. Investments in construction have been growing strongly due to housing construction throughout the year. In the January to September period, investments in construction were 11 per cent higher than in the corresponding period last year. The volume of construction is only now about to attain the level of the early 80s.

In the third quarter, the wages and salaries bill of the national economy grew by good 7 per cent and enterprises' operating surplus by under 10 per cent.

Next year, Finland's National Accounts will start to use a uniform European accounting application (ESA95), based on the UN's SNA93 recommendation. The revision will apply both to Annual and Quarterly National Accounts. The new data will be published as follows:

26 February 1999 Preliminary data for 1998, revised time series for Annual National Accounts
1990 - 1997

22 April 1999 Quarterly National Accounts, 4th Quarter of 1998, time series 1988 - 1998.

Source: National Accounts 1998, 3rd quarter. Statistics Finland