The volume of Finland’s GDP grew by 1.7 per cent in 2018, according to Statistics Finland revised data. The initial preliminary data released in March put the rate of growth at 2.3 per cent.
Gross domestic product, or the value added created in the production of goods and services, amounted to 232 billion euros. The downwards revision of GDP was mainly due to annual data on purchases made by enterprises being received, which increased intermediate consumption.
The calculation for 2017 has also become revised. In 2017, the volume of GDP increased by 3.0 per cent whereas previous estimates put the growth at 2.7 per cent. The current priced value of the GDP remained at the level of the March release, at 224 billion euros. The volume revision was caused by the product structure being updated.
Source: Statistics Finland.
Supply
The value of output grew by 4.7 per cent to 436 billion euros in 2018. The volume of output grew by 1.8 per cent and output prices increased by 2.8 per cent. The value of intermediate consumption increased by 5.8 per cent to 236 billion euros. The volume of intermediate consumption went up by 2.5 per cent.
Intermediate consumption was revised upward more than output compared to the calculation round in March. Therefore, gross domestic product at current prices was revised downward.
In 2018, the value of value added amounted to 200 billion euros. The value of taxes on products was 33 billion euros and the value of product subsidies was 0.9 billion euros. The value of gross domestic product calculated from these items was 232 billion euros.
The 7.6 per cent increase in the value of imports boosted total supply. The value of goods imports rose by 7.2 per cent and that of service imports by 8.4 per cent. Import prices increased by 3.3 per cent and the volume of imports grew by 4.1 per cent.
Demand
The value of exports, 91 billion euros, grew by 5.4 per cent in 2018. Prices of export products went up by 4.3 per cent and the volume of exports increased by 1.1 per cent.
The value of the biggest demand item, private consumption expenditure, increased by three per cent to 125 billion euros. The value of government consumption expenditure grew by 3.4 per cent to 53 billion euros. The volume of consumption expenditure grew in total by 1.8 per cent.
The current price value of investments increased by five per cent to 53 billion euros. The volume of investments went up by three per cent. Building investments in particular were growing. The change in inventories was exceptionally high in 2018. The value of inventories grew by 2.8 billion euros and growth came from several industries. Growth was strongest in the manufacturing of pulp, paper, paper board and cardboard and in boatbuilding.
General government deficit on level with 2017
The financial position of general government or net lending remained on the 2017 level and was 1.8 billion euros in deficit in 2018. The deficit was 0.8 per cent relative to GDP.
The deficit of central government was 2.8 billion euros, while one year before it was 4.0 billion euros. The growth in tax revenue particularly lowered the deficit. The deficit of local government (municipalities and joint municipal authorities, etc.) grew to 2.0 billion euros.
The surplus of employment pension schemes grew from 2.0 billion euros to 2.3 billion euros, although the amount of pensions paid by employment pension schemes continued growing. The surplus includes investment income but not holding gains in assets. Other social security funds showed a surplus of 0.7 billion euros.
General government's share of the gross value added was 18.8 per cent in 2018, which is 0.1 percentage points more than in the year before.
Wages and salaries received by households grew
Wages and salaries received by households grew in nominal terms by 4.1 per cent. This was caused by an increase in employment. Households’ consumption expenditure increased by 3.2 per cent and households’ saving was 0.4 billion euros negative. Households’ saving rate was -0.4 per cent.
