Home > Statistics > Quarterly national accounts > 2018 > 2nd quarter > Finland’s national economy continued growing in April to June

Finland’s national economy continued growing in April to June

In the April to June period, the seasonally adjusted volume of Finland’s gross domestic product grew by 0.3 per cent from the previous quarter. GDP adjusted for working days rose by 2.5 per cent compared to the second quarter of 2017. Calculated at current prices, gross domestic product adjusted for working days was 4.0 per cent higher than one year ago.

Figure 2. Volume change of GDP from the previous quarter, seasonally adjusted, per cent

According to preliminary data compiled by Eurostat, GDP in the EU-28 area grew in the second quarter by 0.4 per cent from the previous quarter and by 2.2 per cent from one year back.

Output

The volume of total value added generated by all industries increased by 0.3 per cent from the previous quarter and by 2.3 per cent from twelve months back.

Figure 3. Changes in the volume of value added generated by industries in the second quarter of 2018 compared to one year ago, working-day adjusted, per cent

Figure 4. Changes in the volume of value added generated by industries in the second quarter of 2018 compared to the previous quarter, seasonally adjusted, per cent

In primary production, that is, agriculture, forestry and fishing, the volume of value added grew in April to June by three per cent from the previous quarter and by seven per cent from the second quarter of 2017. The volume of value added in agriculture declined by one per cent but forestry grew by 11 per cent from last year.

Manufacturing industries continued growing in April to June compared with the year before, but the growth rate remained at around three per cent. From the previous quarter, value added in all manufacturing turned one per cent negative. Adjusted for working days, output in manufacturing was two per cent higher than one year before. The volume of output in the metal industry (excl. electrical and electronics industry) went up by three per cent year-on-year. The electrical and electronics industry grew particularly much, being six per cent higher in the second quarter than one year before, as well as energy supply, and water and waste management, which grew by ten per cent from twelve months back. The development was more subdued in the forest industry, in which output contracted by one per cent from last year, and in the chemical industry, where output fell by three per cent from the year before.

The construction industry grew by one per cent in April to June from the previous quarter and by five per cent year-on-year.

The volume of service industries was on level with the previous quarter but increased by two per cent from twelve months back. Compared to one year ago, value added in private services grew by one per cent and in public services by three per cent.

The volume of trade was on level with the previous quarter but three per cent higher than one year previously. Nearly all other service industries showed clear growth in April to June, and only financial and insurance activities contracted from the previous year. In addition, the industry of information and communication activities remained on level with the year before.

Imports, exports, consumption and investments

Total demand increased in April to June by one per cent from the second quarter of 2017. In particular, the growth in exports and investments increased the demand in the national economy.

Figure 5. Changes in the volume of main supply and demand items in the second quarter of 2018 compared to one year ago, working-day adjusted, per cent

Figure 6. Changes in the volume of main supply and demand items in the second quarter of 2018 compared to one year ago, seasonally adjusted, per cent

The volume of exports grew in April to June by two per cent from the previous quarter and by four per cent from one year back. Exports of goods went up by three per cent and those of services by six per cent year-on-year.

The volume of imports rose by good one per cent from the previous quarter and by nearly two per cent from a year ago. Imports of goods declined by one per cent but those of services rose by six per cent year-on-year.

In the second quarter, the volume of household consumption grew by half a per cent from the previous quarter and by nearly three per cent from twelve months back. Private consumption expenditure, which, in addition to households consumption expenditure, also includes consumption expenditure of non-profit institutions serving households, grew by nearly one per cent from the previous quarter and by good two per cent from the quarter year-on-year. Public consumption expenditure grew by three per cent compared to the second quarter of 2017.

Gross fixed capital formation, or investments, grew by two per cent from the previous quarter and by five per cent year-on-year. Private investments increased by five per cent and government investments by four per cent year-on-year. Investments in residential buildings improved by nine per cent and investments in non-residential buildings by four per cent from one year ago. Investments in civil engineering remained on level with the previous year. The volume of gross fixed capital formation in machinery, equipment and transport equipment increased by five per cent from the second quarter of 2017.

Employment, wages and salaries and national income

In April to June, the number of employed persons increased by 0.6 per cent from the previous quarter and by 2.9 per cent year-on-year. The number of hours worked in the national economy grew by 0.3 per cent from the previous quarter and by 3.1 per cent from one year back.

According to Statistics Finland’s Labour Force Survey, the rate of unemployment for the April to June period was 8.2 per cent, while in last year’s corresponding period it was 9.9 per cent.

In the April to June period, the nominal wages and salaries bill of the national economy grew by 1.3 per cent from the previous quarter and by 5.1 per cent year-on-year. Social contributions paid by employers grew by 0.8 per cent from one year back.

The operating surplus (net), which in business bookkeeping corresponds roughly with operating profit, grew by 4.8 per cent from twelve months back. Gross national income at current prices was 4.4 per cent higher than one year previously.

The available data

These preliminary quarterly data are based on the source information on economic development that had become available by 28 August 2018. The annual level data for 1990 to 2015 correspond with the National Accounts data released on 12 July 2018, except for those on the rest of the world sector (imports, exports, primary income from/to the rest of the world), which may have become revised.

Data on the third quarter of 2018 will be released on 30 November 2018, when the data for previous quarters will also be revised. A flash estimate on GDP development for July to September will be released in connection with the Trend Indicator of Output on 14 November 2018.

Due to the benchmarking and seasonal adjustment methods, quarterly data in the entire time series may become slightly revised in connection with each release. However, the largest revisions take place during the two to three years following the release on a quarter, because final annual accounts data are published at a lag of around two years from the end of the statistical reference year. Seasonally adjusted and trend time series always become revised against new observations irrespective of whether the original time series becomes revised or not.

The quality description can be accessed at (in Finnish): http://www.tilastokeskus.fi/til/ntp/laa.html .

Methodological description of Quarterly National Accounts.

Source: National Accounts 2018, 2st quarter. Statistics Finland

Inquiries: Ida Peltonen 029 551 3334, Samu Hakala 029 551 3756, kansantalous.suhdanteet@stat.fi

Director in charge: Ville Vertanen

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Updated 31.8.2018