Finland: GDP in Q2 sees strongest growth in seven quarters
September 4, 2015
According to official data released by Statistics Finland on 4 September, the Finnish economy grew a seasonally-adjusted 0.2% in Q2 2015 over the previous quarter, which represented the highest reading since Q3 2013. The print was up from the revised level reading recorded in Q1 (previously reported: 0.1% quarter-on-quarter). In annual terms, GDP registered a 0.2% increase in Q2 (Q4: -0.2% year-on-year).
The quarterly increase was mainly driven by a strong improvement in the external sector, offsetting a mild contraction in domestic demand. Private consumption fell 0.2% over the previous quarter, contrasting the 0.7% increase that was tallied in Q1. Government spending was unchanged over the previous quarter (Q1: +0.1% qoq). Fixed investment recorded flat growth in Q2, down from a 0.1% increase in Q1.
On the external front, exports expanded a seasonally-adjusted 0.5% in Q2, which was below the 1.8% increase observed in Q1. Imports recorded a sharp 5.0% drop in Q2, (Q1: -0.7% qoq). As a result, the external sector’s net contribution to GDP growth improved from plus 1.0 percentage points in Q1 to plus 2.2 percentage points in Q2.
Author: Robert Hill, Economist