Sunday 6/20/21
NATIONAL ACCOUNTS

Finland's GDP shrinks in first quarter driven by declining consumption

The volume of exports also fell significantly.
Trucks with cargo entering the port of Helsinki. Photo: Jarmo Vehkakoski/Port of Helsinki.
Trucks with cargo entering the port of Helsinki. Photo: Jarmo Vehkakoski/Port of Helsinki.

Finland’s gross domestic product (GDP) shrank in the first quarter of this year (January to March) compared to both the previous quarter and with the same period last year.

The fall is more pronounced in year-on-year terms and is due to declines in private consumption and, to a lesser extent, in investments. The volume of exports also fell significantly.

According to the latest data released by Statistics Finland, GDP decreased by 0.1% from the previous quarter (October-December 2020). But compared with the fist quarter of 2020, the Nordic country's economy contracted by 1%.

In the first quarter of 2021, the volume of exports contracted by 5% from the previous quarter and by 5.4% year-on-year.

Screenshot_2021-05-30 Statistics Finland - Quarterly national accountsSource: Statistics Finland.

Imports increased by 1.4% from the previous quarter but decreased by 7% year-on-year.

In the first quarter, the volume of private consumption decreased by 0.7% from the previous quarter and by 4.1% from twelve months back.

Gross fixed capital formation, or investments, grew by 1.4% from the previous quarter but decreased by 2.1% year-on-year.

Also according to revised data, GDP grew in October to December by 0.4% from the previous quarter but decreased by 1.1% from twelve months back (was -1.4%).

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