Economic growth in Helsinki region evens out to four per cent

Housing shortage may slow growth

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Economic output in the Helsinki region grew by about four per cent in July-September this year. The figure is slightly higher than in the country as a whole, where growth was just three per cent. Employment increased in Helsinki by 1.7 per cent compared with the same time last year. The figure was slightly higher in the whole country.
      "Although the positive trend in the economy continued in the Helsinki region in the third quarter, growth in output has decreased steadily. One factor slowing down in employment in the Helsinki region is the increasing problems with housing - specifically the shortage of reasonably-priced rental accommodation.", says Deputy Director Jorma Nyrhilä at the publication of the most recent survey of the Helsinki Chamber of Commerce.
     
Turnover among companies in the Helsinki region grew by 4.5 per cent from the previous year. Growth in turnover continued rapidly in construction, business services, and in commerce. "It is very likely that growth in turnover in commerce will continue through the end of the year through Christmas sales. However, now we need to establish the possibilities for continued growth", Nyrhilä noted.
     He says that the main concern in the Helsinki region is the availability of labour and the shortage of reasonably-priced housing.
     Housing production has been declining constantly for several years. This year about 8,000 new dwellings will be built in the Helsinki region.
      It is estimated that in the coming years, the Helsinki region will rank among the top of large cities among old member states of the European Union. Output is expected to grow in the large cities by about 2.5 per cent between 2006 and 2011.

The Helsinki region comprises 12 municipalities with a combined population of 1,285,000 last year, which is 24 per cent of the entire population. The region has 29 per cent of Finland's jobs, and it accounts for exactly one third of Finnish GDP.


Links:
  Helsinki Region Chamber of Commerce

Helsingin Sanomat