HELSINKI: The volume of Finland’s gross domestic product fell by 0.7 per cent in 2014, while previously the decrease was estimated to be 0.4 per cent, according to Statistics Finland’s revised preliminary data.
The 2013 national accounts were also revised. The GDP decreased by 0.8 per cent instead of the previously estimated 1.1 per cent as a result of balancing the supply and demand of the national economy as per the revised data.
Production was reduced by a decrease in exports and investments. The volume of exports declined by 0.9 per cent but the volume of imports remained on the previous level in 2014. The volume of investments decreased by 2.6 per cent. By contrast, consumption expenditure increased slightly, by 0.3 per cent in terms of volume, he statistics show.
Households’ disposable real income diminished by 1.2 per cent in 2014. Households’ adjusted real income describing their economic well-being contracted by 0.9 per cent. Besides net income, it also includes welfare services, such as educational, health and social services that general government and organisations produce for households.
Households’ consumption expenditure grew by 2.1 per cent in nominal terms in 2014 but increased by only 0.4 per cent in volume. The households’ saving rate declined to 0.4 per cent, i.e. households spent only a little less than they earned. Households’ rate of indebtedness was 121.6 per cent in 2014 as per the data.
The share of compensation of employees in national income was 60.4 per cent in 2014 and the share of property and entrepreneurial income was 23.7 per cent. The biggest revisions in the national accounts were made in transactions between Finland and foreign countries.
In addition to exports and imports, new data were received particularly on international property income and expenditure. Both dividends received from abroad and paid abroad grew significantly.
The current account improved considerably but was still EUR 2.5 billion in deficit. The deficit of general government was revised to 3.2 per cent of gross domestic product in 2014.
