Finland’s Growth to Slow on Debt Crisis Pain, Aktia Forecasts

Finland’s economic growth will slow and a recession is possible if Europe’s debt crisis spirals out of control, Aktia Oyj (AKTAV) said.

Gross domestic product will expand 2.8 percent this year and 1.4 percent in 2012, Aktia said, cutting its forecasts from 3.8 percent and 2.4 percent respectively. The likelihood of a recession in Europe is “high” at 40 percent, Chief Economist Timo Tyrvaeinen wrote in an e-mailed report today.

“If the debt crisis becomes unmanageable, we’re headed for a banking crisis,” Tyrvaeinen said. “A recession caused by freezing credit markets and lack of confidence will most likely be deep.”

To contact the reporter on this story: Kati Pohjanpalo in Helsinki at

To contact the editor responsible for this story: Tasneem Brogger at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.