Economic growth (GDP) 

Updated: 1.3.2017 - Next update: 1.6.2017
   
 
 
Share

Gross domestic product remained on level with the previous quarter in October to December, growing by 1,6 per cent in the whole of 2016

According to Statistics Finland's preliminary data, the volume 1) of Finland’s gross domestic product increased in October to December by 0.0 per cent from the previous qarter. Compared with the fourth guarter of 2015, GDP adjusted for working days grew by 1.3 per cent. The volume of GDF grew by 1.6 per cent in the whole of 2016 from the year before.
According to revised data, GDP grew in the third quarter of 2016 by 0.6 per cent from the previous quarter (was 0.4%) and by 1.9 per cent from twelve months back (was 1.6%).
The volume of exports grew by 0.6 per cent and that of imports by 1.9 per cent in October to December from the previous quarter. Gross fixed capital formation, or investments, increased by 3.0 per cent from the previous quarter.
The volume of private consumption increased by 0.1 per cent and the volume of public consumption expenditure declined by 0.6 per cent from the previous quarter. Calculated at current prices, private consumption expenditure increased by 0.8 per cent and public consumption expenditure diminished by 0.7 per cent from the previous quarter.

Source:
Statistics Finland / Quarterly national accounts


Description of indicator

Quarterly national accounts describe Finland’s economy systematically and according to the same concepts and definitions as annual national accounts, but at a more aggregated level. The produced data show how Finland’s GDP has developed by quarter, which activities have grown and by how much, whether output has grown because of exports or investments, how the consumption of households has changed from the previous quarter, and how much wages and salaries have risen from the previous year.

GDP, gross domestic product at market prices is the final result of the production activity of resident producer units.

Economic growth has a crucial impact on the overall picture of the development of society. Economic growth must be continuous and must create jobs to ensure that funding of the Finland’s welfare society and extensive social sector is balanced in relation to public sector revenue. In addition to a job-creating economic policy, technological development is also needed to support sustainable economic growth. Technology creates opportunities for maintaining growth and at the same time curbing the use of natural resources. An ageing population and a declining labour force are major factors threatening to reduce the total work input of the economy and to slow the productivity growth rate.