The Finnish economy grew by less than one per cent from the previous year in May, according to data published by Statistics Finland. (Vesa Moilanen- Lehtikuva)


THE GROSS DOMESTIC PRODUCT of Finland grew by less than one per cent in May, indicates data published last week by Statistics Finland.

Statistics Finland on 16 July revealed that the country’s total output increased by no more than 0.8 per cent from the previous year and, when adjusted for seasonal and random variation, by 0.9 per cent from the previous month in May.

The statistical institution also revised its estimate for the previous month, stating that instead of the 2.8 per cent reported earlier the working day-adjusted output grew by 1.8 per cent year-on-year in April.

Pasi Kuoppamäki, the chief economist at Danske Bank, said the numbers indicate that the economic growth rate for this year will fall well short of the rates registered in the past three years.

“The cooling of world trade is reflected in the foreign trade of Finland, and also investments are not increasing at the clip they used to. The relatively strong financial position of households continues supporting demand for services, but statistics from retail trade have also been somewhat uninspiring recently,” he analysed.

Kuoppamäki underlined that in spite of the downward trend in economic statistics, it would be premature to talk about a recession.

“The deteriorating economic situation is also evident in the labour market, where employment has not improved in its former fashion. The new government has plenty of work ahead of itself if it intends to achieve an employment rate of 75 per cent,” he said.

Laurence Boone, the chief economist at the Organisation for Economic Co-operation and Development (OECD), last week isued a warning about the economic situation in Europe, which faces “a crying need” to loosen purse strings and stimulate economic growth.

Aleksi Teivainen – HT
Source: Uusi Suomi