Finland: Growth accelerates in the second quarter on a stronger domestic sector
September 5, 2011
In the second quarter, GDP expanded a seasonally adjusted 0.6% over the previous quarter. The reading doubled the revised 0.3% expansion recorded in the first quarter (previously reported: +0.8% quarter-on-quarter). Compared to the same period last year, the economy increased 2.9% in working-day adjusted terms. The acceleration over the previous quarter was underpinned by developments in the domestic sector, with domestic demand picking up 1.4% (Q1: +0.7% qoq). Total consumption accelerated amid stronger private consumption, which also rose from a 0.7% expansion in the first quarter to a 1.4% increase, while government spending declined 0.1% (Q1: +0.2% qoq). In addition, fixed investment expanded 2.1%, up from the 0.5% increase observed in the first quarter. Exports contracted 7.1% over the previous quarter, which came on top of a 5.1% decline in the first quarter. In contrast, imports swung from a 4.0% contraction in the first quarter to a flat reading. As a result, the contribution from the external sector to overall growth dropped from minus 0.9 percentage points in the first quarter to minus 3.3 percentage points in the second quarter.