GDP increases by 1.9% in 2016

The volume of Gross Domestic Products (GDP) grew by 1.9 per cent in the country in 2016, according to Statistics Finland’s revised preliminary data.

The initial preliminary data released in March put the rate of growth at 1.4 per cent.

The GDP was revised as new data on intermediate goods used as production inputs in various industries in particular became available. Gross domestic product, or the value added created in the production of goods and services, amounted to EUR 216 billion.

Viewed by current price, value added increased most in construction, agriculture, forestry and fishing, business activities, other services, information and communication services, and real estate activities, which also includes imputed letting of dwellings. Value added decreased slightly in energy and water supply, public administration and education.

Demand in the national economy was mainly boosted by households’ consumption, the volume of which grew by 1.9 per cent. The volume of private consumption grew by 1.8 per cent and the volume of public consumption expenditure by 1.2 per cent.

The volume of investments increased by 7.2 per cent. Private investments grew by 7.9 per cent and government investments by 3.9 per cent. Especially construction investments in machinery and equipment increased. By contrast, investments in research and development and in computer software decreased slightly.

The volume of exports increased by 1.3 per cent in 2016 and that of imports grew by 4.4 per cent. Import prices declined by clearly more than export prices, imports at current prices increased while exports contracted slightly. Exports of goods decreased but the value of imports of goods increased. Exports and imports of services remained at last year’s level.

Last year, net national income grew by 3.1 per cent in real terms, which was clearly more than the gross domestic product because the terms of trade or the ratio between export and import prices improved.