Finland GDP


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.

The Central Bank expects the economy to expand 0.6% in 2014 before accelerating to a 1.7% expansion in 2015. FocusEconomics Consensus Forecast panelists expect GDP to be flat this year, which is down 0.1 percentage points from last month’s projection. For 2015, the panel sees GDP expanding 1.1%.

Author: Teresa Kersting, Economist

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Finland GDP Chart

Finland GDP Q2 2014 0

Note: Quarter-on-quarter changes of seasonally-adjusted GDP in %.
Source: Statistics Finland and FocusEconomics calculations.

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