Statistics Finland confirms 1.6 pct growth in 2016

Finnish economy turned into an upswing in 2016 after a recession for several years, Statistics Finland confirmed on Wednesday.

Figures released by the agency showed Finland's gross domestic product in 2016 grew 1.6 percent, after registering a 0.3 percent growth in 2015 and recession for the three previous years.

While growth was clear particularly in private consumption and the construction business, the picture of the industries is mixed, local media quoted Samu Hakala, a senior researcher at Statistics Finland, as saying. There was strong growth in the forest and chemical sectors, while the electronics side was negative.

Growth was not consistent throughout 2016, with the first and third quarters of 2016 showing good growth while the October-December period experiencing a slowdown. It also sparked speculation among analysts about slower growth in 2017.

In Finnish foreign trade, imports remained the level of 2015, but exports declined in terms of price. The volume of both imports and exports grew, but imports more than exports.

Reijo Heiskanen, chief economist for the OP Bank, told news service Talouselama that "this was only the beginning and there is better to come."

Meanwhile, Aki Kangasharju, the chief economist for Nordea Bank, told evening paper Iltalehti that the best phase of growth may already be over. He based his view primarily on the sluggish situation of exports. Endit