RTTNews - The Finnish economy is likely to contract 5% this year and there is deflation risk, the country's insurer Tapiola said Wednesday in its latest forecasts. The growth forecast for the economy was revised down from a 4% contraction predicted initially.

At the same time, the firm raised its outlook for 2010 to show a decline of 0.5% from 1.1% fall said in its previous forecast. Further, it warned that the unemployment rate will rise above 10% in 2010.

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