In the third quarter, gross domestic product (GDP) increased 0.5% over the previous quarter in seasonally adjusted terms. The rise represented a significant deceleration compared to the second quarter's extraordinary 2.6% increase (previously reported: +1.9% quarter-on-quarter), which marked the fastest pace in over 20 years. Furthermore, the figure came in well below the Statistics Finland preliminary estimate of a 1.3% expansion. In annual terms, GDP grew 3.7% in the third quarter, down from the 4.9% expansion observed in the second quarter. The slowdown was mainly fuelled by a sharp deceleration in exports, which swung from a 13.5% expansion in the second quarter to a 0.1% contraction in the third quarter. Meanwhile, imports slowed less markedly, moderating form a 7.5% expansion in the second quarter to a 5.5% increase. As a result, the net contribution from the external sector to overall growth swung from a positive 3.5 percentage-point contribution in the second quarter to a 2.3 percentage-point detraction in the third quarter. On the domestic side, total consumption accelerated from a 0.2% increase in the second quarter to 0.7% in the third quarter, fueled by higher government consumption (Q2: -1.4% qoq; Q3: +0.3% qoq), while private consumption growth was unchanged on the second quarter's 0.9%. In contrast, gross fixed investment decelerated to a 2.7% expansion (Q2: +3.9% qoq), mostly driven by softer growth in residential building investment. At the sector level, the deceleration was broad-based, with growth in all three main sectors ? agriculture, industry and services ? slowing over the previous quarter. In particular, agriculture, forestry and fishing, dropped 5.3% (Q2: +4.2% qoq). Meanwhile, industry and construction, posted a 0.3% contraction (Q2: +4.3% qoq), while services, which represent nearly half of the total economy, recorded a flat reading (Q2: +0.8% qoq). The Bank of Finland anticipates that the economy will grow 2.6% this year and 3.0% next year.
Economic growth drops sharply in the third quarter
December 9, 2010
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Finland Economic News
October 14, 2016
In August, economic activity fell a working-day adjusted 0.1% over the same month last year, according to the Monthly Trend Indicator of Output.
October 14, 2016
The current account posted a EUR 166 million deficit in August, according to Statistics Finland.
September 15, 2016
In July, economic activity expanded a working-day adjusted 1.5% over the same month last year, according to the Monthly Trend Indicator of Output.
September 6, 2016
The Finnish economy recorded flat growth in Q2 over the previous quarter in seasonally-adjusted terms, which represented a slowdown from Q1’s 0.3% expansion, according to preliminary data released by Statistics Finland on 6 September.
August 15, 2016
The current account posted a EUR 219 million deficit in June according to Statistics Finland.