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Growth of GDP slowed down in the first quarter of the year

In the first quarter of 2005, the volume of Finland's gross domestic product grew by 0.1 per cent from the previous quarter. Compared to the first quarter of 2004, GDP was up by 1.1 per cent. Year-on-year growth was only recorded in service industries.

There were two working days less than one year previously. Adjusted seasonally as well as for working days, the change in GDP from twelve months before was 2.0 per cent.

According to the Flash estimate of GDP compiled by Eurostat, the Statistical Office of the European Communities, in the first quarter of 2005 GDP grew in the EU area by 0.5 per cent from the previous quarter, and was 1.6 per cent up on the corresponding time period of the year before.

Output

In agriculture the volume of output was two per cent higher while in forestry it was as high as twelve months previously. Output in game husbandry and fishing fell notably as catches of fish decreased from the exceptional sizes recorded twelve months back.

Industrial output was nearly one per cent lower than twelve months earlier. In the wood and paper industry, output grew by 1.5 per cent in the first quarter of the year. Output in the metal industry contracted by one per cent. In other manufacturing, output declined by two per cent in the first quarter.

In the January to March period, output in construction increased by two per cent from the year before. Building construction increased by approximately 1.5 per cent and civil engineering by over three per cent compared to one year previously.

The sales volume of trade was three per cent greater than twelve months earlier. Wholesale trade and retail trade both increased by three per cent year-on-year. Motor vehicle sales were good two per cent up compared to twelve months back. Output in the transport industry grew by close on 3.5 per cent in the first quarter of 2005.

Imports, exports, consumption and investments

The output of the national economy was increased by exports, household consumption and growth in inventories. The volume of exports increased by nearly six per cent. In the first quarter of 2005, imports were five per cent up on the year before.

Private consumption grew by 1.5 per cent in the first quarter. After two years of strong growth, households' purchases of new motor vehicles decreased for the third successive quarter. Year-on-year, car purchases were down by seven per cent. By contrast, purchases of domestic appliances and furniture were plentiful. Households' consumption of services grew by around two per cent.

Construction investments were of the same magnitude as twelve months previously. Both housing construction and other building construction were of the same magnitude as in the previous year, but investments in civil engineering grew by approximately three per cent. Investments in machinery and equipment contracted by 14 per cent, having increased since last year's spring prior to this. In the first quarter of the year, private investments decreased by five per cent and public investments were of the same magnitude as twelve months earlier.

Employment, wages and salaries and national income

Employment improved in the first quarter of 2005. The number of employed persons went up by 1.8 per cent from the corresponding quarter of 2004. According to Statistics Finland's Labour Force Survey, the rate of unemployment for the January to March period was 9.2 per cent. In last year's corresponding quarter it stood at 9.3 per cent. The rate of employment was 66.4 per cent in the first quarter of 2005, having been 65.4 per cent twelve months previously.

In the first quarter of 2005, the nominal wages and salaries bill (excluding incentive stock options) of the national economy grew by 4.4 per cent. Operating surplus, which in business bookkeeping roughly corresponds to business profit and households' entrepreneurial income, contracted by good one per cent. In the first quarter of the year, national income increased in nominal terms by just short of three per cent and was in real terms of almost the same magnitude as in the corresponding quarter of the year before.

The available data

These preliminary data on the first quarter of 2005 are based on information on economic development available by 2 June 2005.

Data at the annual level correspond with the National Accounts data released on 28 February 2005.

Data concerning the second quarter of 2005 will be released on 8 September 2005.

Revised calculation of financial intermediation services indirectly measured

The calculation of financial intermediation services in-directly measured (FISIM) will be revised in National Accounts. Their use will be allocated to industries broken down into final consumption, intermediate consumption and net exports. The revision will also influence the level and annual changes of GDP. Revised annual level data will be published on 14 July 2005.

Corresponding changes will be made to quarterly ac-counts so that revised time series starting from 1995 will be available from Statistics Finland by the end of July 2005.

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Last updated 9.6.2005