Gross domestic product rose by 3.0 per cent in 2021

Supply

The current priced value of the output of the whole economy was 8.8 per cent and intermediate consumption grew by 11.6 per cent in 2021. In 2021, the current priced value added calculated as the difference between these rose by 5.8 per cent.

The strong growth in output and intermediate consumption is explained by risen prices. The price of output was up by 5.1 per cent and its volume by 3.5 per cent. The price of intermediate consumption rose by 7.5 per cent and volume by 3.8 per cent. The volume of value added increased by 3.2 per cent.

Imports of goods and services at current prices grew by 15.6 per cent in 2021. The volume of imports grew by 5.6 per cent and prices rose by 9.5 per cent. Prices rose especially in imports of goods.

The rise in prices was partially affected by low prices in the comparison year 2020. Towards the end of the year, prices picked up, however, as the prices of electricity and crude oil rose.

Industry-specific value added

In manufacturing, value added at current prices grew by nine per cent but as prices rose by eight per cent, volume grew by only one per cent.

In electricity, gas, steam and air conditioning supply, value added grew at current prices by 13 per cent. As prices rose by 12 per cent, the volume went up by one per cent.

In service industries, value added at current prices increased by 5.1 per cent. The volume of value added increased by 3.6 per cent. The price development in services was moderate and prices rose by 1.4 per cent.

In services, growth was strongest in the financial and insurance sector. Output was boosted particularly by the growing commission income of financial corporations and the increased non-life insurance premium income of non-life insurance companies.

Accommodation and restaurant services recovered from the slump caused by the coronavirus in 2021. Value added rose by 5.2 per cent and volume by 3.4 per cent. Prices went up by 1.7 per cent.

Employment and wages

The impact of the corona crisis on employment remained moderate and the level of 2019 was exceeded in 2021. The number of employed persons rose to a new record level as the number of employed persons went up by 3.3 per cent from 2020. The number of hours worked grew by 3.2 per cent in 2021 and the wages and salaries sum of the whole economy by 5.1 per cent.

The positive development in the wages and salaries sum, employed persons and hours worked was strong in most industries. In some industries, especially in transport industries, the coronavirus pandemic still had a clear effect on development.

Examined by sector, wages and salaries in the non-financial corporations sector went up by 5.4 per cent, while in general government the corresponding growth was 4.4 per cent.

Demand

Private consumption was again growing in 2021 after the slump in 2020. Private consumption prices still rose moderately in 2021.

Growth compared to the previous year was seen in households' consumption expenditure especially in clothing and accommodation and food service activities, which fell considerably in the first corona year.

Insurance services also grew significantly in 2021, as did transport services as a whole, although consumption expenditure on air and sea transport in particular still diminished in 2021.

The growth in food and alcoholic beverages was on a more usual level, which is in line with the growth in consumption expenditure spent on restaurant services.

The consumption expenditure of resident households in the rest of the world and that of non-resident households in Finland remained on an unusually low level in 2021 as well.

Investments grew moderately in 2021

The current price value of investments was EUR 59 billion in 2021 and the current price value grew by 3.5 per cent compared to 2020. The volume of investments increased by 1.1 per cent year-on-year.

The volume of private investments increased by 4.6 per cent. The growth in the volume was mostly due to building investments, especially renovation building of dwellings grew. Investments in research and development also increased from 2020.

The volume of public investments in turn fell by 13 per cent year-on-year. Measured in euros, the biggest fall was seen in land and water constructions.

General government deficit halved from 2020 — central government deficit diminished

The financial position, or net lending, of general government showed a deficit of EUR 6.8 billion in 2021. In the previous year, the deficit was EUR 13.2 billion. The contraction in general government deficit was affected by fallen expenditure related to the corona pandemic and an increased accrual of tax revenue and social security contributions. In 2021, the deficit was 2.7 per cent relative to GDP. The data became slightly revised from the release of March.

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The deficit of central government was EUR 8.2 billion, while one year before it was EUR 13.1 billion. The deficit of local government (municipalities and joint municipal authorities, etc.) grew from the previous year, being EUR 440 million.

The surplus of employment pension schemes grew again considerably as dividend income and received social security contributions grew, to around EUR 2.1 billion. The surplus does not include value changes in investments. The financial position of other social security funds remained almost unchanged compared with the previous year, being approximately EUR 220 million in deficit.

Revision of quarterly national accounts

In connection with the June release, we have also updated the database tables of quarterly national accounts in accordance with the European revision policy.