GDP falls by 2.9% in 2020

The volume of Finland’s Gross Domestic Product (GDP) fell by 2.9 per cent in 2020, according to Statistics Finland.

The fall was slightly revised from the initial preliminary data from March, where it was 2.8 per cent.

The effects of the coronavirus crisis varied between industries. Some of the largest declines concerned the accommodation and food services service industry and transportation.

The value added to the whole economy at current prices fell by 1.6 per cent and volume by three per cent in 2020.

The coronavirus had a particular effect on demand for services and in 2020, the current priced value added of service industries decreased by 1.9 per cent.

The volume of service fell by 3.6 per cent. The variation between service industries was great. Some services experienced sharp drops in value added, like accommodation and catering, transport, arts, as well as entertainment and recreation.

Value added grew in the information and communication industry. Value added at current prices was growing slightly in many industries but the growth remained lower than normal.

Among manufacturing industries, the electronic and electrical industry grew clearly in 2020. Overall, value added in manufacturing at current prices declined by 1.3 per cent from the year before.

The household consumption expenditure also shows exceptionally large variations by consumption category in 2020. The consumption expenditure of Finnish households abroad, as well as that of non-resident households in Finland, remained at unusually low levels.

In addition, exceptional decreases were seen in the consumption expenditure of culture and recreation and clothing, for example.

Consumption expenditure on transport was also falling heavily, as was consumption expenditure on accommodation and food service activities.

Growth in private consumption was seen especially in food, alcoholic beverages, and domestic appliances and furniture.

The current priced value of investments was EUR 57 billion in 2020. The volume of investments fell by one per cent.

The volume of private investments went down by three per cent. Investments in machinery and equipment decreased by five per cent. Investments in buildings and structures, as well as in intellectual property products also decreased from 2019.

The volume of public investments increased by 11 per cent. Measured in euros, the biggest growth was seen in civil engineering.