Finland: Economic activity growth decelerates in July
September 14, 2018
Economic activity grew a working-day adjusted 1.5% in July compared to the same month last year, down from the revised 2.8% expansion in June (previously reported: +3.0% year-on-year).
The economy observed a broad-based slowdown in July. Services production, the largest output category in Finland, expanded 0.9% in July, down significantly from 2.7% in June. Primary production, which captures the agriculture, forestry and fishing sectors, grew 8.5% in July, down from 9.4% in June. Secondary production, which includes the manufacturing and construction sectors, expanded 3.1% in July, down from 3.7% in June.
A month-on-month comparison shows that economic activity on a seasonally-adjusted basis contracted 0.5% in July, contrasting the revised 0.2% expansion recorded in June (previously reported: +0.3% month-on-month). Average year-on-year growth in economic activity slowed to 2.4% in July from 2.5% in June.
Finland GDP Forecast
The Central Bank expects the economy to expand 2.9% in 2018 and 2.2% in 2019. FocusEconomics Consensus Forecast panelists expect an economic expansion of 2.7% in 2018, which is unchanged from last month’s forecast. For 2019, the panel sees GDP increasing 2.2%, which is also unchanged from last month’s forecast.
Author: Edward Gardner, Economist