Finnish production surges nearly five percent over August last year

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Total Finnish output, especially in manufacturing, was significantly higher in August than at the same time last year. According to Statistics Finland, total production increased by 4.9% from August 2003. Growth from July to August was 0.2%.
      The increase was higher than professional economists had anticipated. Pasi Sorjonen of the Research Institute of the Finnish Economy (ETLA) characterised the output figures as good.
     
Measured on an annual level, industrial output increased by some nine percent. In primary production and in transport, production increased by 7%, and retail and wholesale went up by 4%.
      Manufacturing, especially electronics and electrical devices, is thriving. Electronics manufacturing increased by a whopping 31%. One likely reason for the surge is the decision by Nokia to cut prices in order to start winning back the market share in mobile telephones that it had lost to its competitors.
      Output in the wood and paper industries grew by nearly ten percent. Although the price of paper remained largely unchanged, the industry announced already in August that its slump was over.
      Arto Koskinen of Statistics Finland said that production started to increase in May this year. “The export industry has come as a backup to the service sector and private consumption. It is a very positive situation for the national economy to be standing on two feet now”, he said.
      Statistics Finland reports that figures in January through August indicate that growth in production this year was 3.4%, which is significantly higher than in previous years.
     
In addition to the production figures, there have been other positive messages concerning the Finnish economy. Last week the Swiss foundation, the World Economic Forum, declared Finland to be the world’s most competitive economy.
      On Tuesday Statistics Finland reported that in September, the number of unemployed in Finland was 21,000 fewer than a year earlier.
      Pasi Sorjonen of ETLA said that the figures are much better than expected. However, he refused to concede that Finland is doing well.
      ”At least the growth figures are good, but we’ll have to see how it continues. Most forecasters are expecting good numbers next year, but there is a danger that we will forget the big problems, and do nothing about them”, he warned.
      The population is growing older and the supply of labour is decreasing. It means that achieving powerful growth is more difficult than before. We need to work on behalf of the basic prerequisites of entrepreneurship.”
      Sorjonen also notes that export prices are fairly low. “One cannot determine a company’s profitability on the basis of the growth figures”.
     
     
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