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Published: 2 March 2015

Gross domestic product contracted by 0.1 per cent last year

According to Statistics Finland’s preliminary data, the volume of Finland’s GDP contracted by 0.1 per cent in 2014. Last year, GDP that describes the output of the national economy stood at EUR 204 billion. National income describing the income of the national economy went down by 0.5 per cent in real terms.

Annual change in the volume of gross domestic product, per cent

Last year, demand in the national economy was depressed in particular by decreases in private investments and exports. Private investments decreased by 6.5 per cent but public investments grew by 0.6 per cent. The volume of private consumption went down by 0.2 per cent but public consumption grew by 0.2 per cent. The volume of exports shrunk by 0.4 per cent and that of imports by 1.4 per cent.

Non-financial corporations' operating surplus describing profits from their actual operations grew marginally by one per cent in nominal terms. It is estimated that non-financial corporations paid five per cent more dividends and 17 per cent less taxes than in the year before. Non-financial corporations' financial position showed a surplus of EUR 6.2 billion. The surplus grew from the previous year also because gross fixed capital formation decreased by six per cent.

General government deficit 3.4 per cent of GDP

The financial position of general government, i.e. net lending, was in deficit for the sixth successive year, by EUR seven billion. In the previous year, the deficit was EUR 5.1 billion. The deficit was 3.4 per cent of the gross domestic product, which exceeds the three per cent threshold value of the European Union's Growth and Stability Pact for the first time since 1996. Statistics Finland will publish the deficit and debt data that must be reported to the European Commission on 31 March 2015. The deficit data published here may become revised in that connection.

The deficit of central government was EUR eight billion, while one year before it was EUR 7.4 billion. The increase in the deficit was affected most by the lower corporation tax rate. According to preliminary data, the deficit of local government grew to EUR 1.9 billion, having been EUR 1.5 billion in the year before.

The surplus of employment pension funds decreased from EUR 3.7 billion to EUR 3.5 billion. The surplus does not include holding gains in assets. Other social security funds were EUR 0.6 billion in deficit mainly due to increased unemployment expenses. In the previous year, their economy was in balance.

Households’ real income decreased for the third successive year. Net disposable income fell by 1.1 per cent in real terms. Households' adjusted real income contracted by 0.7 per cent. Adjusted income also takes into consideration welfare services, i.e. the individual services that general government and organisations produce for households, such as educational, health and social services.

Wage and salary income grew by 0.6 per cent in nominal terms. However, social security benefits went up by 4.5 per cent, as the number of pensioners and unemployed increased. Property and entrepreneurial income grew by 0.9 per cent.

Direct taxes paid by households increased by 5.8 per cent, i.e. clearly more than income. Consumption expenditure grew by 1.4 per cent in nominal terms but gross fixed capital formation contracted by 5.2 per cent because newbuilding decreased.

National Accounts 2004 – 2014, Tables, PDF

Source: Source: National Accounts. Preliminary annual data and 4th quarter of 2014 Statistics Finland

Inquiries: Olli Savela 029 551 3316, Tuomas Rothovius 029 551 3360, kansantalous@stat.fi

Director in charge: Leena Storgårds

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• 1. Gross domestic product decreased by 0.1 per cent in 2014 (2.3.2015)

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• Appendix table 1. Gross domestic product (GDP) at market prices 1975-2014* (2.3.2015)

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Updated 2.3.2015