Finland's period of negative growth is probably behind, posts first expansion after three consecutive years of contraction

Finland posted its first positive GDP reading in four years, finally showed return to growth after three consecutive years of contraction. Data showed that the Finnish real GDP increased by 0.4% in 2015.

Q4 GDP increased by 0.1% q/q and 0.6% y/y (workday adjusted), clearly beating the expectations based on the Flash estimate released earlier. Domestic demand increased by 1.2% q/q, driven by both consumption and investment, while private consumption rose by an astonishing 1.9% y/y, the fastest pace since early 2012.

Finland has finally escaped negative growth, but no rapid acceleration is likely going forward. The outlook for exports looks still rather weak. Data showed that net exports made a negative contribution to GDP growth as imports increased faster than exports.

"It is difficult to anticipate a major export recovery without a recovery first taking place in global manufacturing and investment. Moderate growth at below 1% is expected also for 2016 with domestic demand as the primary engine." said Nordea Bank in a report.