Finland: Economic activity posts strongest growth in over two decades in June
August 17, 2021
Economic activity grew 9.7% year-on-year in working-day adjusted terms in June, which followed May's 8.9% increase, and marked the best result since November 2000. June’s result was in part favored by a low base effect, as activity declined sharply in June 2020 due to stringent lockdown measures. Consequently, the trend improved sizably, with annual average variation of economic activity coming in at plus 0.5% in June, up from May’s minus 0.9%.
June’s acceleration was due to activity in the services sector growing at a faster rate. Meanwhile, activity in both the primary sector—which includes the agriculture, hunting, forestry and fishing subsectors—and secondary production expanded at more moderate paces in June compared to May.
On a monthly basis, economic activity increased 0.8% in seasonally-adjusted terms in June, which was above May’s 0.5% expansion.
Moreover, preliminary national accounts data showed the Finnish economy was robust in the second quarter. GDP grew 2.0% in seasonally-adjusted quarter-on-quarter terms, bouncing back from Q1’s 0.1% decline. Meanwhile, in year-on-year terms the economy returned to growth, with GDP expanding 7.4% (Q1: -1.5% yoy).
More detailed national accounts data will be published on 31 August.
Author: Marta Casanovas , Junior Economist