Output of Finland’s national economy increased further in July to September

In the July to September period of 2017, the seasonally adjusted volume of Finland’s gross domestic product increased by 0.4 per cent from the previous quarter. GDP adjusted for working days grew by 3.0 per cent compared to the third quarter of 2016. Calculated at current prices, gross domestic product adjusted for working days was 4.0 per cent higher than one year ago.

Figure 1. Volume change of GDP from the previous quarter, seasonally adjusted, per cent

Figure 1. Volume change of GDP from the previous quarter, seasonally adjusted, per cent

According to preliminary data compiled by Eurostat, GDP in the EU-28 area grew by 0.6 per cent in the third quarter compared to the previous quarter, and by 2.5 per cent from twelve months back.

Production

The volume of total value added generated by all industries increased by 0.4 per cent from the previous quarter and by 3.4 per cent from twelve months back.

Figure 2. Changes in the volume of value added generated by industries in the third quarter of 2017 compared to one year ago, working-day adjusted, per cent

Figure 2. Changes in the volume of value added generated by industries in the third quarter of 2017 compared to one year ago, working-day adjusted, per cent

Figure 3. Changes in the volume of value added generated by industries in the third quarter of 2017 compared to the previous quarter, seasonally adjusted, per cent

Figure 3. Changes in the volume of value added generated by industries in the third quarter of 2017 compared to the previous quarter, seasonally adjusted, per cent

In primary production, that is, agriculture, forestry and fishing, the volume of value added grew in the third quarter by 0.9 per cent from the previous quarter and by 2.6 per cent from one year previously. The volume of value added in agriculture decreased by 2.9 per cent but that of the forest industry grew by 4.5 per cent from a year ago.

The total value added in manufacturing industries grew by 2.7 per cent in the third quarter year-on-year but decreased by 0.3 per cent from the previous quarter. Output of manufacturing industries decreased by 0.3 per cent from the previous quarter but was 3.2 per cent higher than one year ago. Positive development was seen in particular in the forest industry and the metal industry (excl. electrical and electronics industry) that grew by around six per cent year-on-year in July to September.

The construction industry grew by 0.8 per cent in July to September from the previous quarter and by 4.7 per cent year-on-year.

In service industries, the volume increased by 0.6 per cent from the previous quarter and by 3.2 per cent year-on-year. Compared to one year ago, value added in private services grew by 3.5 per cent and by 2.4 per cent in public services.

The volume of trade increased by 1.4 per cent from the previous quarter and by 4.1 per cent from a year ago. Transport grew by 4.7 per cent, financial and insurance activities by 8.1 per cent and business services by 9.9 per cent year-on-year but in information and communication activities value added declined by 0.4 per cent from one year ago.

Imports, exports, consumption and gross fixed capital formation

Total demand increased in July to September by 0.5 per cent from the previous quarter and by 3.7 per cent from the third quarter in 2016. All demand items that is exports, consumption and investments were on a clearly higher level than one year earlier.

Figure 4. Changes in the volume of main supply and demand items in the third quarter of 2017 compared to one year ago, working-day adjusted, per cent

Figure 4. Changes in the volume of main supply and demand items in the third quarter of 2017 compared to one year ago, working-day adjusted, per cent

Figure 5. Changes in the volume of main supply and demand items in the third quarter of 2017 compared to one year ago, seasonally adjusted, per cent

Figure 5. Changes in the volume of main supply and demand items in the third quarter of 2017 compared to one year ago, seasonally adjusted, per cent

In July to September, the volume of exports decreased by 2.0 per cent from the previous quarter. However, compared with one year ago, the volume of exports increased by 5.8 per cent. Exports of goods went up by 5.9 per cent and those of services by 5.6 per cent year-on-year.

The volume of imports contracted by 2.5 per cent from the previous quarter but increased by 0.5 per cent year-on-year. Imports of goods grew by 2.3 per cent but those of services fell by 3.0 per cent year-on-year.

In July to September, the volume of private consumption grew by 0.5 per cent from the previous quarter and by 2.1 per cent from twelve months back. Government consumption expenditure increased by 1.8 per cent year-on-year.

Gross fixed capital formation, or investments, grew by 2.3 per cent from the previous quarter and by 9.3 per cent year-on-year. Private investments grew by 11.4 per cent but public investments decreased by 0.4 per cent from one year back.

Investments in residential buildings improved by 3.7 per cent and investments in non-residential buildings by 4.9 per cent from one year ago. Investments in civil engineering grew by 2.3 per cent year-on-year. The volume of gross fixed capital formation in machinery, equipment and transport equipment increased by as much as 35.2 per cent from the third quarter of 2016.

Employment, wages and salaries and national income

In July to September, the number of employed persons increased by 0.2 per cent from the previous quarter and by 0.5 per cent year-on-year. The number of hours worked in the national economy went down by 0.5 per cent from the previous quarter, but contracted by 0.2 per cent from one year back.

According to Statistics Finland’s Labour Force Survey, the rate of unemployment was 7.7 per cent in the third quarter. In the corresponding period of last year it stood at 7.6 per cent.

In July to September, the nominal wages and salaries bill of the national economy grew by 0.2 per cent from the previous quarter and by 1.6 per cent year-on-year. Social contributions paid by employers declined by 6.3 per cent from last year.

The operating surplus (net), which in business bookkeeping corresponds roughly with operating profit, grew by 17.6 per cent from twelve months back. Gross national income at current prices was 3.7 per cent higher than one year previously.

The available data

These preliminary quarterly data are based on the source information on economic development that had become available by 27 November 2017. The annual level data for 1990 to 2016 correspond with the National Accounts data released on 13 July 2017, except for those on the rest of the world sector (imports, exports, primary income from/to the rest of the world), which may have become revised.

Data concerning the last quarter of 2017 will be released on 28 February 2018, when the data for previous quarters will also be revised. A flash estimate on GDP development for October to December will be released in connection with theTrend Indicator of Output data for December on 14 February 2018.

Due to the benchmarking and seasonal adjustment methods, quarterly data in the entire time series may become slightly revised in connection with each release. However, the largest revisions take place during the two to three years following the release on a quarter, because final annual accounts data are published at a lag of around two years from the end of the statistical reference year. Seasonally adjusted and trend time series always become revised against new observations irrespective of whether the original time series becomes revised or not.

The quality description can be accessed at (in Finnish): http://www.tilastokeskus.fi/til/ntp/laa.html .

Methodological description of Quarterly National Accounts

Source: National Accounts 2017, 3rd quarter. Statistics Finland

Inquiries: Samu Hakala 029 551 3756, Veli-Pekka Karvinen 029 551 2667, kansantalous.suhdanteet@stat.fi

Director in charge: Ville Vertanen


Updated 1.12.2017

Referencing instructions:

Official Statistics of Finland (OSF): Quarterly national accounts [e-publication].
ISSN=1797-9765. 3rd quarter 2017, Output of Finland’s national economy increased further in July to September . Helsinki: Statistics Finland [referred: 17.12.2017].
Access method: http://www.stat.fi/til/ntp/2017/03/ntp_2017_03_2017-12-01_kat_001_en.html

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