Gross domestic product fell by 0.1 per cent in 2024

Households' saving rate grew – growth in paid pensions raised pensioners' income

Households’ wages and salaries sum grew moderately in 2024. The development of wages and salaries was curbed by decreased employment. Employment was particularly weakened by the weak economic situation in newbuilding.

Households' disposable income grew due to the growth in pensions from the year before. Thus, paid pensions grew clearly faster than wages and salaries.

Private consumption grew moderately in 2024 and households' savings grew. Households' saving rate also grew.

General government deficit continued to grow

The deficit of general government grew to nearly EUR 12,5 billion in 2024. In the previous year, the deficit was EUR 8.1 billion.

The deficit of central government was EUR 10.4 billion, while one year before it was EUR 9.1 billion. This was primarily due to increased investments, current transfers to social security funds and wellbeing services counties and debt management expenditure.

Interest paid by central government rose. Compared to the previous year, the difference between interest income and expenditure, or net interest expenses, grew by EUR 0.7 billion.

The deficit of local government, excluding wellbeing services county administration, decreased from the previous year, being EUR 1.0 billion. The decrease in the deficit was particularly caused by a EUR 0.9 billion increase in tax revenue and a moderate increase in expenditure. The deficit of wellbeing services county administration was EUR 1.8 billion, while in 2023 it was EUR 1.7 billion.

The surplus of employment pension schemes was EUR 2.0 billion, having been EUR 2.6 billion one year earlier. The weakening of the financial position was mainly due to increased pension contributions as a result of index increases.

The financial position of other social security funds also weakened, being EUR 1.3 billion in deficit. Social security contributions received decreased significantly because the share of insurance contributions in wages and salaries was lowered in 2024.

Current account strengthened in 2024

The current account showed a surplus of EUR 0.8 billion in 2024 (EUR -1.4 billion in 2023). The current account was pushed up by the growth in net exports of services and the strengthened balance of the secondary income account.

The growth in net exports of services was particularly explained by strong development in telecommunication, computer and information services and growth in charges for the use of intellectual property. The goods account weakened.

Tax revenues grew moderately and tax ratio fell

The accrual of taxes and compulsory social security contributions decreased by 0.2 per cent in 2024 and totalled EUR 116.3 billion.

The tax ratio was 42.1 per cent relative to gross domestic product. Compared to 2023, the tax ratio fell by 0.6 percentage points.

The tax revenue of central government grew by 0.7 per cent and it amounted to EUR 69.7 billion. The tax revenue of local government grew by 7.0 per cent and was EUR 14.0 billion.

Of taxes paid on goods and services, value added tax grew most, as its accrual grew by 3.0 per cent and amounted to EUR 25.8 billion. The increase in the accrual of value added tax was due to the raised general value added tax rate in September from 24 to 25.5 per cent.

The accrual of income taxes paid by households grew by 2.4 per cent from the previous year and was EUR 35.6 billion, while the accrual of corporations' income tax fell by 8.5 per cent and was EUR 7.1 billion.

The net tax ratio was 16.4 per cent relative to gross domestic product and it fell by 1.6 percentage points from 2023. The fall in the net tax ratio was mostly due to the big growth in current transfers, especially in social security pension benefits paid by employment pension schemes.

National Accounts' table package

The table package combining national accounts data is available in PDF/A format in Finnish and English. The table package is updated in connection with each annual national accounts release.