Finland’s economic growth will accelerate to 1.3 percent next year, helping narrow its budget deficit, the European Commission said today.
Gross domestic product will expand 0.8 percent this year, the Commission said, keeping its forecast unchanged from February. The government’s budget deficit will narrow to 0.4 percent of GDP in 2013 from 0.7 percent this year. The commission in November forecast a deficit of 0.7 percent for next year.
The northernmost euro member’s economy relies on exports for 40 percent of its output, and a third of its sales abroad are in the euro area, which will shrink 0.3 percent this year, according to the Commission’s forecast.
Domestic demand is boosting the AAA rated Nordic nation, as the European Central Bank’s record-low 1 percent interest rate keeps mortgage costs low and buoys consumption.
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