EBRD ups 2010 forecasts

Published: January 25, 2010

Bank says recovery looks stronger, but some countries will still struggle.

The European Bank for Reconstruction and Development has increased its 2010 growth forecast for the region it covers following strong performances from Poland, Turkey, Russia and Kazakhstan

The bank now expects average growth for the region - 30 countries from central Europe to central Asia - to hit 3.3% in 2010, compared to the 2.5% it predicted in October. For 2011, it predicts average regional growth of 3.8%.

The upward revision is driven by stronger commodity prices, the bank says, as well as a resumption of capital flows to large emerging market countries.

However, it warns that for smaller countries that do not export commodities, the recovery will continue to be slow. The Baltic States and Hungary could still see negative growth in 2010.