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OP-Pohjola Cuts Finnish Growth Forecast as Domestic Demand Wanes

Finland’s economy will expand at a slower rate than previously forecast, according to OP-Pohjola Group, a Finnish banking and insurance co-operative.

Gross domestic product will grow 0.8 percent this year and 1.7 percent in 2014 after an average 0.2 percent expansion in 2012, the Helsinki-based group said in a report today. It had forecast growth of 1.4 percent for 2013 on Aug. 27.

Exports are recovering “slightly” and domestic spending is crimped by weak expectations, tax increases and stagnating real income, OP-Pohjola said. Finland’s economy is in recession after shrinking on two consecutive quarters.

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