It's official: Finland in recession

According to advance figures from Statistics Finland, the volume of Finnish GDP declined by 1.3% in the last quarter of 2008, relative to the previous quarter. Growth had already slowed down appreciably in early 2008, and in the third quarter output diminished by 0.3% from Q2/2008.
      Given that the standard definition of the malaise is a decline in output lasting for at least six successive months, Finland's economy can be officially considered as being in recession.
     
Compared with the GDP figures for the last quarter of 2007, the latest numbers show a decline of 2.4% after adjustments for working days.
      In manufacturing, value added decreased by 5.3% year-on-year in the last quarter, but still grew by 0.3 per cent over the year as a whole.
      In construction, output declined by 3 per cent in the last quarter but nevertheless remained on a par with the previous year over the whole year.
      Services also saw a contraction (of 0.7%) year-on-year in the last quarter, but grew by 1.5 per cent over the whole year.
      The overall impression is that the decline during the last quarter accelerated as the three-month period progressed. Seasonally-adjusted output in October, for example, was actually up on the figure for October 2007, but both November and December witnessed steep falls from 12 months earlier.
     
Non-financial corporations' operating surplus contracted by 2% year-on-year last year and their entrepreneurial income diminished by 15% per cent. Entrepreneurial income roughly corresponds with profit before payment of taxes and dividends. Non-financial corporations paid 6% less in direct taxes and 20% less in dividends than in the previous year.
     
Household disposable income grew last year by 6.3% in nominal terms and by 2.7% in real terms. Households' wage and salary income rose by just over 7%, property and entrepreneurial income by 3.6%, and social security benefits by 3.8%.
      Direct taxes paid amounted to 5.2 per cent more than in the year before.
     
Further details from the Statistics Finland links.


Previously in HS International Edition:
  Warning! Painful Recovery Ahead (24.2.2009)

Links:
  Statistics Finland: Gross domestic product in decline, Finland is in recession
  Statistics Finland: Gross domestic product fell by 2.4 per cent in the fourth quarter, Finland is in recession
  Statistics Finland: General government surplus contracted in 2008, debt decreased slightly
  Stat.fi Index Page (contains links to other statistics)