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

The economy will grow 0.7 percent this year and 1.4 percent in 2013, the Helsinki-based group said. It previously forecast the economy will grow 1 percent in 2012 and 2 percent next year. Main reasons for the forecast cut include weaker export demand and tax increases, which will hurt consumer spending power, OP- Pohjola said.

To contact the reporter on this story: Kasper Viita in Helsinki at kviita1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net