Economic Bulletin 1/2005

• Economic Bulletin 1/2005
  10.03.2005  |  pdf, 83 Kt

Summary

Economic growth in Finland  appears to have remained rather brisk towards the end of last year, with investment also returning to a clear growth track after a few slower years. The growth of private consumption, however, is now slowing down. The increase in total output will be somewhat faster than anticipated in earlier forecasts, rising to 3.3 per cent.

Given the favourable trend in output, the rise in employment which began at the end of last year is expected to continue. Even though the supply of labour will also increase with improving job opportunities, the unemployment rate will drop to just below 8½ per cent.

Central government finances will slide into a clear deficit, but general government finances as a whole will still show a surplus of over 1½ per cent relative to total output.

Next year  the growth contribution of all demand components will fade somewhat, and the growth of total output is projected to slow down to 2.7 per cent. Nonetheless, the number of jobs is expected to increase in the service sector, with the unemployment rate edging down to 8 per cent. It is anticipated that the central government deficit will continue to deepen to some extent and that the municipal finances will remain in deficit. As a whole, however, general government finances will continue to show a surplus at 1½ per cent of GDP.

Language versions

• Suhdannekatsaus 1/2005
  10.03.2005
• Konjunkturöversikt 1/2005
  10.03.2005

Printable version