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Published: 29 January 2016

Gross domestic product fell by 0.7 per cent in 2014

According to Statistics Finland’s revised preliminary data, the volume of Finland’s gross domestic product fell by 0.7 per cent in 2014, while previously the decrease was estimated to be 0.4 per cent. The 2013 national accounts were also revised: gross domestic product decreased by 0.8 per cent instead of the previously estimated 1.1 per cent as a result of balancing the supply and demand of the national economy.

Annual change in the volume of gross domestic product, per cent

Production was reduced by a decrease in exports and investments. The volume of exports declined by 0.9 per cent but the volume of imports remained on the previous level in 2014. The volume of investments decreased by 2.6 per cent. By contrast, consumption expenditure increased slightly, by 0.3 per cent in terms of volume.

Households’ disposable real income diminished by 1.2 per cent in 2014. Households' adjusted real income describing their economic well-being contracted by 0.9 per cent. Besides net income, it also includes welfare services, such as educational, health and social services that general government and organisations produce for households.

Households' consumption expenditure grew by 2.1 per cent in nominal terms in 2014 but increased by only 0.4 per cent in volume. In 2014, households' saving rate declined to 0.4 per cent, i.e. households spent only a little less than they earned. Households' rate of indebtedness was 121.6 per cent in 2014.

The share of compensation of employees in national income was 60.4 per cent in 2014 and the share of property and entrepreneurial income was 23.7 per cent.

The biggest revisions in the national accounts were made in transactions between Finland and foreign countries. In addition to exports and imports, new data were received particularly on international property income and expenditure. Both dividends received from abroad and paid abroad grew significantly. The current account improved considerably but was still EUR 2.5 billion in deficit.

The deficit of general government was revised to 3.2 per cent of gross domestic product in 2014.

Minor revisions were made in the time series. Internal income transfers and pensions paid by central government and employment pension schemes were revised starting from 2004. Central government investments were revised in 2012 and income tax paying sectors in 2011 and 2012. Dividend payer sectors were revised in 2012.

Preliminary data for the year 2015 will be released in two parts. Preliminary data concerning gross domestic product, production of industries and the supply and demand of the national economy will be released on 29 February 2016 as part of the quarterly accounts of the fourth quarter of 2015. Preliminary data concerning sector accounts will be released on 16 March 2016. At this time, preliminary data released on 29 February 2016 may become slightly revised.

Source: National Accounts 2005 - 2014*, Statittics Finland

Inquiries: Olli Savela 029 551 3316, Markku Räty 029 551 2647, kansantalous@stat.fi

Director in charge: Ville Vertanen

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• Gross domestic product (GDP) at market prices 1975-2014* (29.1.2016)

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Updated 29.1.2016