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Published: 16 March 2018

Gross domestic product grew by 2.6 per cent last year

Corrected on 29 March 2018. The corrections are indicated in red.

According to Statistics Finland’s preliminary data, the volume of Finland’s GDP grew by 2.6 per cent in 2017. The growth rate became slightly revised from the data published in early March (was 3.0 per cent). Last year, GDP that describes the output of the national economy stood at EUR 224 billion. National income describing the income of the national economy went up by 3.4 per cent in real terms

Annual change in the volume of gross domestic product, per cent (The figure was corrected on 29 March 2018)

The demand of the national economy went up by 3.6 per cent last year. Demand was particularly boosted by growth in investments and increased exports. Investments were 6.3 per cent higher than one year previously. The volume of private consumption went up by 1.6 per cent and public consumption by 1.3 per cent. The volume of exports grew by 7.8 per cent and that of imports by 3.5 per cent.

Non-financial corporations' operating surplus describing profits from their actual operations grew by as much as 17.5 per cent. Entrepreneurial income that describes the profit before payment of taxes and dividends grew by ten per cent. It is estimated that non-financial corporations paid around six per cent less dividends and 27 per cent more direct taxes than in the year before. Non-financial corporations' financial position showed a surplus of EUR 8 billion.

The financial position of financial and insurance corporations showed a surplus of EUR one billion. Financial corporations’ interest income (financial intermediation services indirectly measured) grew slightly and commission income increased by good two per cent.

General government deficit 0.6 per cent of GDP

The financial position of general government, i.e. net lending, was in deficit for the ninth successive year, being 1.3 EUR one billion . In the previous year, the deficit was EUR 3.9 billion. The deficit amounted to 0.6 per cent relative to GDP. Statistics Finland will publish the deficit and debt data to be reported to the European Commission on 29/03/2018.

General government surplus / deficit relative to GDP, per cent (The figure was corrected on 29 March 2018)

The deficit of central government was EUR 3.8 billion, while one year before it was EUR 5.8 billion. One of the reasons for the contraction of the deficit was a 4.0 per cent growth in tax revenues. The deficit or net borrowing of local government (municipalities and joint municipal authorities, etc.) contracted to EUR 0.2 billion according to preliminary data, having been EUR billion in the year before.

The surplus of employment pension funds decreased from EUR 2.4 billion to EUR 2.1 billion. The surplus diminished because the growth in paid pension benefits was greater than received pension contributions. The surplus does not include holding gains in assets. Other social security funds were EUR 0.7 billion in surplus mainly due to an increase in received income transfers from the state.

General government's share of the gross value added was 18.6 per cent in 2017, which is 1.1 percentage points lower than in 2016.

Households’ real income grew by 1.4 per cent

Households' adjusted real income grew by 1.3 per cent. Adjusted income also takes into consideration welfare services, i.e. the individual services that general government and organisations produce for households, such as educational, health and social services.

Wage and salary income grew by 2.6 per cent in nominal terms. Social security benefits went up by 0.3 per cent, for example, the number of persons retiring on earnings-related pension was slightly lower than in 2016.

Direct taxes paid by households increased by 0.8 per cent. Final consumption expenditure grew by 2.6 per cent in nominal terms. Investments, mainly in dwellings, increased by 8.9 per cent.

Source: National Accounts 2017, preliminary data. Statistics Finland

Inquiries: Tuomas Rothovius 029 551 3360, Pekka Tamminen 029 551 2460, kansantalous@stat.fi

Director in charge: Ville Vertanen

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Appendix tables

• Appendix table 1. Gross domestic product (GDP) at market prices 1975-2017* (The table was corrected on 29 March 2018) (16.3.2018)
• Appendix table 2. Revision of annual volume change, % (The table was corrected on 29 March 2018) (16.3.2018)

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Updated 16.3.2018