EBRD raises E.Europe growth forecasts for 2010, 2011

28th October 2010, Comments 0 comments

The European Bank for Reconstruction and Development on Thursday raised its 2010 and 2011 economic growth forecasts for Eastern Europe but highlighted an uneven recovery in its operating zone.

"The EBRD ... predicts overall growth in the region of 4.2 percent in 2010 and 4.1 percent in 2011," the London-based bank said in a statement. That compared with the previous forecasts of 3.5 percent and 3.9 percent.

The institution, created in 1991 to help former communist nations in their transition to market economies, operates in 29 countries from central Europe to central Asia.

The region, which includes Albania, Croatia, Russia, Turkey and Ukraine, contracted by 5.5 percent last year due to the fierce global economic downturn.

"Emerging Europe is gradually experiencing a more broadly based economic recovery," the EBRD said.

"But the region remains sharply divided between countries benefiting from rising commodity prices and capital inflows -- and others that are expected to remain in recession or see only a feeble recovery in 2010."

The bank, which stepped up its activities to aid eastern European countries hit hard by the global recession, usually invests in private enterprises together with commercial partners.

© 2010 AFP

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