Finland GDP Q1 2016


GDP grows modestly in Q1

According to preliminary data released by Statistics Finland on 3 June, the Finnish economy expanded a seasonally-adjusted 0.6% in Q1 2016 over the previous quarter, which represented a slight improvement from Q4’s revised 0.5% expansion (previously reported: +0.1% quarter-on-quarter). In annual terms, GDP registered a 1.2% rise in Q1 (Q4: +1.3% year-on-year).

The slight improvement was mainly driven by stronger private consumption, which increased by 0.6% following 0.3% growth in Q4. Growth was held back by lower public spending, which contracted 0.3%, contrasting a 0.7% expansion in the previous quarter. Fixed investment grew 0.4% in Q1 (Q4: +0.6% quarter-on-quarter).

On the external front, exports dropped a seasonally-adjusted 1.1% in Q1, which contrasted the 0.6% expansion observed in Q4. Imports fell 1.8% in Q1, which was a significant reversal from the 2.0% growth registered in Q4. As a result, the external sector’s net contribution to GDP growth advanced from minus 0.6 percentage points in Q4 to plus 0.3 percentage points in Q1.

The Central Bank expects the economy to expand 0.7% in 2016 and 1.0% in 2017. FocusEconomics Consensus Forecast panelists are almost in line with the Central Bank’s forecast and expect the economy to expand 0.7% in 2016, which is unchanged from last month’s projection. For 2017, the panel sees GDP expanding 1.1%.

Author:, Economist

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Finland GDP Chart

Finland GDP Q1 2016

Note: Quarter-on-quarter changes of seasonally-adjusted GDP in %.
Source: Statistics Finland and FocusEconomics Consensus Forecast.

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