Finland GDP Grows

Statistics Finland on Thursday confirmed that the economy grew by 2.8% year-on-year in 2017–0.2 percentage points more than it estimated in March.

Finland’s gross domestic product, or the value added in the production of goods and services, amounted to €224 billion ($260.3 billion) as the output of virtually all main industries increased from the previous year, FNA reported.

The national statistical institute said value added grew particularly in the construction, energy supply, mining and quarrying, accommodation and food service, and administrative and support service sectors. The education, public administration, and human health and social work sectors contrastively registered a decline in value added.

Investments were the primary driver of aggregate demand in Finland in 2017, according to Statistics Finland. Private investments increased by 4.6% and public investments by 1.8%, translating to a 4% increase in the total volume of investments.

The growth was robust particularly in machinery and equipment investments in the construction sector, whereas investments in computer software and research and development decreased slightly.

Statistics Finland also reported that the volume of exports rose by 7.5% from the previous year and that of imports by 3.5%, resulting in the current account showing a surplus.

The central government budget showed a significant deficit for the ninth consecutive year, despite net borrowing decreasing from €5.7 billion in 2016 to €4 billion in 2017. Also local government budgets showed a deficit of €0.3 billion last year.

Finnish households saw their real disposable income creep up by 0.8% from the previous year following a 2.2% increase in wages and salaries and a 0.9% increase in social security benefits. Households’ property and investment income, in turn, increased by 2.1% year-on-year.

The volume of household consumption consequently rose by 1.4 per cent.