Finnish Economy to Contract This Year, Finance Ministry Projects

Finland’s economy will shrink this year as a recession in the euro area engulfs its northernmost member, keeping the government’s budget in deficit, the Finance Ministry said.

Gross domestic product will contract 0.1 percent this year, before growing 0.5 percent in 2013 and 1.7 percent in 2014, the Helsinki-based ministry said today in a report on its website. It had previously forecast growth of 1 percent for this year and next and a 2 percent expansion for 2014.