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Published: 12 July 2018

Gross domestic product grew by 2.8 per cent last year

Corrected on 12 July 2018 at 14:00. The corrections are indicated in red.

According to Statistics Finland’s revised preliminary data, the volume of Finland’s GDP grew by 2.8 per cent in 2017. The initial preliminary data released in March put the rate of growth at 2.6 per cent. Gross domestic product, or the value added created in the production of goods and services, amounted to EUR 224 billion.

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

Value added grew in nearly all main industries in 2017

Examined at current prices, value added grew strongly in nearly all main industries. Growth was strongest in mining and quarrying, energy supply, administrative and support services, accommodation and food service activities, and construction. Among major industries, value added decreased slightly in human health and social work activities, public administration and education.

The volume of value added increased most in business activities, energy and water supply, manufacturing and technical activities. Volume growth was also strong in accommodation and food service activities, transport, construction, and financial and insurance activities. The volume of value added decreased in human health and social work activities.

Exports, private investments and households’ consumption increased demand

Demand in the national economy was mainly boosted by investments, the volume of which grew by 4.0 per cent. The volume of households’ consumption grew by 1.4 per cent, in turn, the volume of public consumption expenditure declined by 0.5 per cent.

Private investments grew by 4.6 per cent and government investments by 1.8 per cent. Especially construction investments in machinery and equipment increased. By contrast, investments in research and development and in computer software decreased slightly.

The volume of exports increased by 7.5 per cent in 2017 and that of imports grew by 3.5 per cent. Measured at current prices, the export of goods increased more than the import of goods. Although the export of services increased clearly more than imports, service exports were still around EUR one billion lower than imports. Current account turned into surplus.

Last year, net national income grew by 2.9 per cent in real terms. The terms of trade or the ratio between export and import prices weakened slightly. Import prices rose by more than export prices.

Non-financial corporations’ profits grew

Non-financial corporations' operating surplus describing profits from their actual operations went up by 21 per cent from the previous year. Non-financial corporations’ entrepreneurial income increased by nine per cent as property income decreased and property expenditure grew somewhat. Entrepreneurial income also takes into consideration property income and paid interests and rents, and corresponds roughly with profit before payment of taxes and dividends.

Non-financial corporations’ net lending, or financial position, showed a surplus of EUR 10.7 billion, as against EUR 9.5 billion in the previous year. The financial position improved as profits increased even if non-financial corporations’ investments also grew.

General government’s net lending, or financial position, showed a deficit of EUR 1.5 billion, while the deficit was EUR 3.7 billion in the previous year. Last year, the deficit was 0.7 per cent relative to GDP, which was clearly below the three per cent reference value of the European Union.

Last year, the financial position of central government showed a notable deficit for the ninth successive year. The deficit (net borrowing) was EUR 4.0 billion, while one year before it was EUR 5.7 billion. The deficit or net borrowing of local government (municipalities and joint municipal boards, etc.) was EUR 0.3 billion. The surplus of occupational pension funds’ net lending diminished to EUR 2.0 billion from the previous year. The surplus does not include holding gains in assets. Other social security funds were EUR 0.8 billion in surplus, the surplus in 2016 was EUR 0.5 billion.

The size of the public economy is described by general government's share of the gross value added, which was 18.5 per cent in 2017, having been 19.5 per cent one year earlier.

Households’ disposable income grew by 0.8 per cent in real terms. Households’ adjusted disposable income grew by 0.5 per cent in real terms. 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.

Households’ wage and salary income went up by 2.2 per cent and social benefits by 0.9 per cent. Wage and salary income increased as employment grew. Households’ property and entrepreneurial income went up by 2.1 per cent.

Source: National Accounts.

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

Director in charge: Ville Vertanen

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• Appendix table 1. Gross domestic product (GDP) at market prices 1975-2017* (12.7.2018)

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Updated 12.7.2018