Finland: GDP rebounds in Q2 and posts mild growth
September 5, 2014
According to official data released by Statistics Finland on 5 September, the Finnish economy expanded a seasonally-adjusted 0.2% in Q2 over the previous quarter, which contrasted the 0.3% drop tallied in Q1 and was the highest pace of expansion since Q3 last year. In annual terms, GDP fell 0.1% (Q1: 0.0% year-on-year), marking the fastest pace of contraction since Q3 2013.
The quarterly expansion was mainly driven by increasing investment. Private consumption fell 0.3% over the previous quarter, which came in below the flat growth that was tallied in Q1. Government consumption increased from Q1’s 0.8% contraction to a 0.1% contraction in Q2. Fixed investment rebounded from Q1’s 1.5% drop to a 0.5% expansion in Q2.
On the external front, exports rose a seasonally-adjusted 2.2% in the second quarter, which contrasted the 1.8% contraction seen in Q1. Imports grew 2.4% in Q2, which contrasted the 2.9% drop seen in the first quarter. As a result, the external sector’s net contribution to GDP growth deteriorated from plus 0.4 percentage points in Q1 to minus 0.1 percentage points in Q2.