Finland: Economy contracts again in Q3
December 5, 2012
In the third quarter, GDP declined a seasonally adjusted 0.1% over the preceding quarter, according to data released by the statistical institute on 5 December. The reading contrasted the preliminary estimate of a 0.3% expansion released by the statistical institute on 15 November but, nevertheless, marked an improvement over the 1.1% contraction seen in the second quarter. In annual terms, the economy contracted a working-day adjusted 1.2%, which represents a further deterioration over the 0.3% decline seen in the previous quarter.
The external sector improved over the preceding quarter. While exports swung from a 0.8% contraction in the second quarter to a 2.4% expansion in the third quarter, imports recorded a 3.7% fall (Q2: -1.7% quarter-on-quarter).
On the domestic front, total consumption rose 0.7% (Q2: -1.9% qoq), mostly underpinned by a rebound in private consumption, which swung from a 2.3% drop in the second quarter to a 0.8% expansion in the third. Government spending also supported the recovery witnessed in total consumption by expanding 0.3% (Q2: -0.7% qoq). In contrast, fixed investment remained in the red by posting a 1.1% contraction (Q2: -2.0% qoq).