Finland GDP growth continues despite missing preliminary estimates

Finland's GDP grew by 0.4 percent in the second quarter compared to the previous quarter, according to recent statistics. While this indicates continued economic recovery, the growth rate was lower than the 0.9 percent previously indicated by preliminary estimates. The annual GDP growth for the second quarter reached 1.6 percent.

Growth was primarily driven by foreign trade, specifically a significant increase in net exports supported by strong goods exports, including the delivery of a large cruise ship. In contrast, private consumption growth nearly stalled, increasing by only 0.1 percent in the second quarter after a growth of over one percent in the first quarter.

Säästöpankkiryhmä has significantly raised its economic forecast for the year to 2.2 percent, up from a previous estimate of 0.5 percent. Chief Economist Henna Mikkonen noted that the recovery appears broad-based, supported by various factors including increased investments, particularly in the defense sector. While business confidence has risen above long-term averages, high unemployment continues to affect household confidence.