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Gross domestic product grew in the fourth quarter of last year

In the October to December period of 2005, the volume of GDP increased by 0.9 per cent from the previous quarter. Compared with the fourth quarter of 2004, GDP was 2.3 per cent higher. In 2005 GDP was up by 2.1 per cent on the previous year. Primary production, processing and service industries grew from the year before.

There was one less working day in 2005 than in the year before. Adjusted seasonally and for working days, the change in GDP from twelve months before was 2.90 per cent.

According to the Flash estimate of GDP compiled by Eurostat, the Statistical Office of the European Communities, GDP in the EU area grew by 0.3 per cent in the last quarter of the year from the previous quarter and it was 1.7 per cent higher than in the corresponding period of the previous year.

Output

The volume of output in agriculture was ten per cent higher than one year previously due to the good grain crop. Output in forestry was five per cent greater as fellings increased.

Industrial output was on level with the previous year. Output in the wood and paper industry increased by two per cent in the fourth quarter. In the metal industry, output remained unchanged from the previous year. Output in other manufacturing contracted by two per cent in the last quarter of 2005.

Output in construction increased in October to December by nearly seven per cent from the previous year. Building construction was over seven per cent and civil engineering more than four per cent up on the year before.

The sales volume of trade was over five per cent higher than one year previously. Wholesale trade grew by five per cent and retail trade by around six per cent. Sales of motor vehicles were seven per cent up on one year before. In transport, output grew by close on two per cent in the fourth quarter of 2005.

Imports, exports, consumption and investments

Households' consumption and investments have increased the output of the national economy. The volume of exports grew by close on five per cent in the October to December period. Imports were over nine per cent higher than one year before.

Private consumption grew by nearly three per cent in the fourth quarter. Just slightly more new cars were bought than one year previously. Purchases of furniture and especially of domestic appliances and electronics were plentiful. Households' consumption of services grew by good two per cent.

Construction investments increased by over six-and-a-half per cent. Construction of residential buildings went up by nearly six per cent and other building construction by around nine per cent. Investments in civil engineering increased by about five per cent. Investments in machinery and equipment, without transport equipment, contracted throughout the early part of the year. They now fell by ten per cent. Private investments grew by three per cent in the last quarter, while government investments contracted by over seven per cent from one year before.

Employment, wages and salaries and national income

Employment improved further in the fourth quarter of last year, the number of employed persons increasing by 2.3 per cent from the corresponding quarter of the previous year. According to Statistics Finland's labour force statistics, the rate of unemployment was 7.6 per cent in the October to December period. In the corresponding period of 2004 the rate of unemployment was 7.9 per cent. The rate of employment was 67.7 per cent in the fourth quarter, against 66.7 per cent in the year before.

The nominal wages and salaries bill of the national economy grew by 4.2 per cent in the October to December period (excluding incentive stock options). Operating surplus, which in business bookkeeping roughly corresponds to business profit, and households' entrepreneurial income increased by three per cent. In the last quarter of 2005, national income was over four per cent higher than in the corresponding quarter of the previous year, because besides growth of GDP, capital income received from abroad increased more than capital income paid abroad. In real terms, national income grew by good one per cent, because the terms of trade weakened.

The available data

These preliminary data on the fourth quarter of 2005 are based on information on economic development available by 20 February 2006.

Data at the annual level correspond with the National Accounts data released on 14 July 2005.

Data concerning the first quarter of 2006 will be released on 9 June 2006.

Volume calculation will be revised

In national accounts the methods for fixed price calculations are being revised. Output at current prices and intermediate consumption will be deflated separately, and value added at fixed prices will be derived as the difference of these figures. At the same time, the fixed base year will be changed into a varying base year.

On 31 March 2006, Statistics Finland will publish revised annual national accounts time series for the 1975 to 2004 period. The respective revised time series for quarterly national accounts will be published in April 2006. Once this has been done, the data published here for 2005 will no longer be fully comparable with those on earlier years.

The data for 2005 (national balance of supply and demand items) will be next revised on 9 June 2006 at the same time as preliminary data are published for the first quarter of 2006. Sector accounts for 2005 will be next revised on 13 July 2006. After these revisions, the data on 2005 will again be fully comparable with those on earlier years.

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Last updated 28.2.2006