GDP per capita

Updated: 14 Jul 2021
Next update: 17 Sep 2021

GDP, gross domestic product at market prices is the final result of the production activity of resident producer units. It can be defined in three ways: as the sum of gross value added of the various institutional sectors or the various industries plus taxes and less subsidies on products; as the sum of final uses of goods and services by resident institutional units (final consumption, gross capital formation, exports minus imports); as the sum of uses in the total economy generation of income account (compensation of employees, taxes on production and imports less subsidies, gross operating surplus and gross mixed income).

GDP per capita is often used in international comparisons as a measurement of national economy. The volume index describes an economic series from which the effect of price change, or inflation, has been removed. The volume index includes the observed occurrence and changes in both quantity and quality.

Gross domestic product (GDP) indicators can be used to make assessments about the development of the national economy and its relationship to the overall development of society. The use of the GDP indicator as a measure of wellbeing has also been widely criticised, and many citizens and decision-makers have expressed a desire for another index to replace it. An indicator based on economic theory does not take into account, for example, environmental damage or financial inequality among citizens. On the other hand, one of the strengths of the GDP indicator is its robust statistical basis and international comparability. Moreover, national accounting, on which GDP is based, has been regularly adjusted to correspond with social changes and it has been expanded by incorporating within it satellite accounts relating to human wellbeing, use of natural resources and the state of the environment.

   

Gross domestic product fell by 2.9 per cent in 2020

According to Statistics Finland’s preliminary data, the volume of Finland’s GDP fell by 2.9 per cent in 2020. The fall was slightly revised from the initial preliminary data from March, where it was 2.8 per cent. The effects of the corona crisis varied between industries. Some of the largest declines concerned the accommodation and food services service industry and transportation.