Although the Finnish economy is expected to show strong growth, a worldwide weakening in demand is also expected to gradually be felt here as well.
The biggest brake on Finland's economic growth is inflation which Tapiola Bank is forecasting at 3.2% this year. In 2012, inflation is projected at a flat 2%.
Tapiola's cyclical survey paints a gloomy picture of the European debt crisis. Growth in the Eurozone was strong early the year but may be slowing. If the debt crisis deepens, at worse it could trigger a new financial crisis.
This Finnish bank also foresees the European Central Bank continuing with interest rate rises, but believes if the crisis continues, increases will be fewer than markets expect.
