Finland’s GDP expands in Q4, domestic demand grows surprisingly on consumption and investment

Finland's economy has indicated unexpectedly signs of rebound in the fourth quarter of 2015. Finland's GDP grew 0.1% q/q and 0.6% y/y. There were forecast of a slight decline in the flash estimate that was released earlier.

Finland's net exports have contributed negatively to the GDP growth, subtracting 0.9 percentage points as imports grew faster than exports. Surprisingly, Finland's domestic demand grew 1.2% q/q, which was mainly driven by investment and consumption.

Consumption contributed 0.3 percentage points to the GDP. Private consumption grew 0.2% q/q and 1.9% y/y, which is the fastest rate since early 2012. The demand for durable goods was mainly strong. Meanwhile, investment grew 1.7% q/q with private investment leading at 2.1%.

Investment rebounded on a wider scale with both machinery and construction investment increasing. Overall in 2015, Finland's GDP grew 0.4%, as compared with the projection of -0.2%. This is the first positive growth number in four years.