Finland’s economy will contract less than previously forecast this year after household spending spurred growth in the first quarter, Tapiola Bank said.
Gross domestic product will shrink 0.5 percent in 2012, less than the 1.5 percent drop forecast on Dec. 15, the Espoo, Finland-based bank said in an e-mailed statement. Next year, the Nordic country’s GDP will increase by 0.5 percent.
Finland’s economy tracks the other developed nations with about a six-month lag, Tapiola said. Finland’s economy, which relies on exports for 40 percent of its output, is vulnerable to the deepening debt crisis in Europe.
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