Finland: Economy continues sustained recovery
November 12, 2010
In September, economic activity increased 4.2% over the previous year in working-day adjusted terms according to the monthly Trend Indicator of Output. The reading was slightly below the 4.5% increase tallied in August. Moreover, the figure was favoured by a low base of comparison, as in September last year output plunged 10.2% annually. A month-on-month comparison corroborates the notion of a softer growth as output remained flat in seasonally adjusted terms over the previous month. The monthly deceleration was the result of weaker growth in the services sector, which slowed from 4.2% in August to 3.2% in September. In contrast, both the primary (agriculture, hunting, forestry and fishery) and secondary (manufacturing and construction) sectors improved. The secondary sector accelerated to a 9.7% expansion in September (August: +8.8% year-on-year), while the primary sector moderated the pace of decline by contracting 4.9% (August: -10.1% yoy). Based on the preliminary monthly data, Statistics Finland estimates that in the third quarter the economy grew a seasonally adjusted 1.3% over the previous quarter and 4.3% in annual terms. The complete set of data for gross domestic product will be released on 9 December. The Bank of Finland anticipates that the economy will grow 2.6% this year and 3.0% next year.