Home > Statistics > Quarterly national accounts > 2011 > 2nd quarter > 1. Economic growth sustained by private consumption and investments in the second quarter, development of exports weak

1. Economic growth sustained by private consumption and investments in the second quarter, development of exports weak

In the second quarter, the volume of Finland’s gross domestic product grew by 0.6 per cent from the previous quarter. Adjusted for working days, gross domestic product was 2.9 per cent up on the second quarter of 2010. Calculated at current prices, GDP adjusted for working days grew by 7.3 per cent year-on-year.

In the annual accounts data released in July, the volume growth of GDP became revised to 3.6 per cent (was 3.1%). As a consequence, the change percentages of GDP in the first quarter of 2011 became revised slightly downwards: to +0.3 per cent from the previous quarter (was +0.8 %) and to +4.8 per cent from twelve months back (was +5.5 %).

Figure 1. Revisions - seasonally adjusted volume of GDP by release

According to preliminary data compiled by Eurostat, in the second quarter of 2011 GDP in the EU-27 area went up by 0.2 per cent from the previous quarter.

1.1. Output

In primary production, that is, agriculture, forestry and fishing, the volume of value added was in the second quarter 2.8 per cent higher than in the previous quarter, but 2.6 per cent lower than one year previously.

Output in manufacturing grew slightly in the second quarter. Its value added was 0.4 per cent up on the previous quarter and 3.2 per cent up on the respective quarter twelve months back. In the wood and paper industry value added went up by 4.9 per cent from the previous quarter but decreased by 2.2 per cent year-on-year. In the metal industry (excl. electrical and electronics industry) value added decreased by 1.9 per cent from the previous quarter but increased by 4.8 per cent from one year back. Value added in the electrical and electronics industry grew by 3.7 per cent from the quarter before and by six per cent year-on-year.

In the April to June period, output in construction increased by 1.5 per cent from the previous quarter and by four per cent from one year back.

Value added in services went up by 0.7 per cent from the previous quarter and by 2.7 per cent year-on-year. In trade value added was two per cent up on the previous quarter and 4.7 per cent up year-on-year.

The volume of total value added generated by all industries grew by 0.9 per cent from the previous quarter and by 2.7 per cent from twelve months back.

1.2. Imports, exports, consumption and investments

In the second quarter, total demand decreased by 0.7 per cent from the previous quarter but increased by 1.1 per cent year-on-year. Private consumption and investments increased demand, but exports diminished.

Figure 2. GDP and expenditure components, change from previous quarter (seasonally adjusted, at current prices)

In April to June, the volume of exports fell by 7.1 per cent from the previous quarter and was 6.8 per cent lower than twelve months earlier. Exports of goods contracted by 2.9 per cent and those of services by 12.8 per cent from the previous quarter. The volume of imports remained on level with the previous quarter and was 1.1 per cent up year-on-year. Imports of goods decreased by 0.5 per cent but imports of services grew by 2.6 per cent from the previous quarter.

The volume of private consumption grew by 1.4 per cent from the previous quarter and by 4.6 per cent from twelve months back. The volume of public consumption expenditure fell by 0.1 per cent from the previous quarter but grew by 0.5 per cent year-on-year.

In the second quarter, the volume of investments increased by 2.1 per cent from the quarter before and by 7.4 per cent year-on-year. Construction investments went up by 0.7 per cent from the previous quarter and by 4.7 per cent from one year back. The volume of investments in machinery, equipment and transport equipment increased by eight per cent from the previous quarter and by 18.7 per cent year-on-year. Private investments increased by 2.9 per cent but public investments fell by 7.8 per cent from the quarter before.

1.3. Employment, wages and salaries and national income

In the second quarter, the number of employed persons went up by 1.1 per cent from the previous quarter and was 1.3 per cent higher than one year previously. The number of hours worked in the national economy increased by 1.6 per cent from the previous quarter and by two per cent from one year back.

According to Statistics Finland’s Labour Force Survey, the unemployment rate for the April to June period was 8.8 per cent. In the corresponding period of 2010 it stood at 9.6 per cent.

In the April to June period, the nominal wages and salaries bill of the national economy grew by 1.6 per cent from the previous quarter and by 5.8 per cent year-on-year. The large year-on-year increase in wages and salaries is partly explained by private sector bonuses, which grew substantially from the low levels of spring 2010. The operating surplus (net), which in business bookkeeping corresponds roughly with business profit, grew by 11 per cent at current prices from twelve months back. Gross national income calculated at current prices was 7.1 per cent higher one year previously.

1.4. The available data

These preliminary data on the second quarter of 2011 are based on the source information on economic development that had become available by 26 August 2011.

The annual level data for 1990 to 2010 correspond with the National Accounts data released on 14 July 2011. Data on the third quarter of 2011 will be released on 5 December 2011, when the data for previous quarters will also be revised.

Due to the benchmarking and seasonal adjustment methods, quarterly data may be slightly revised as regards the whole time series in connection with each release. Major revisions take place, however, during the next two to three years following the release on the 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.

Methodological description of Quarterly National Accounts : http://tilastokeskus.fi/til/ntp/men_en.htmll

Source: National Accounts 2011, 2nd quarter. Statistics Finland

Inquiries: Pasi Koikkalainen (09) 1734 3332, Samu Hakala (09) 1734 3756, kansantalous.suhdanteet@stat.fi

Director in charge: Ari Tyrkkö

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Updated 5.9.2011