Finland: Economy expands in Q2
September 5, 2013
In the second quarter, GDP rose 0.2% over the previous quarter in seasonally-adjusted terms, according to data released by the statistical institute on 5 September. The figure contrasted the 0.2% drop seen in the first quarter.
On the domestic side, total consumption contracted 0.2% in the second quarter (Q1: 0.0% quarter-on-quarter), reflecting a slight deterioration in private consumption (Q1: -0.3% qoq; Q2: -0.4% qoq) and a slowdown in government spending (Q1: +0.8% qoq; Q2: +0.4% qoq). Fixed investment contracted 0.1%, contrasting the 0.7% increase in Q1.
Exports of goods and services swung from a 0.2% quarter-on-quarter expansion in Q1 to a 0.1% drop in Q2. In contrast, imports expanded 0.3% in the second quarter, which contrasted the 5.3% drop recorded in the previous quarter.
In annual terms, the economy contracted 0.7% in the second quarter, which represented an improvement compared to the 3.3% drop recorded in first quarter of 2013.
The Central Bank expects the overall economy to contract 0.8% this year, before accelerating to a 0.7% expansion next year. FocusEconomics Consensus Forecast panelists expect GDP to grow 0.2% this year, which is down 0.1 percentage points from last month's projection. For 2014, the panel sees GDP expanding 1.5%.
Author: Armando Ciccarelli, Head of Data Solutions