Finland: GDP grows modestly in Q1
June 3, 2016
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.
Author: Christopher Mc Innes, Economist