The Central and South Eastern European countries would record stronger growth in 2013, but at a slower rate than estimated earlier, as the crisis-stricken Eurozone is showing signs of stabilization, a report from the European Bank for Reconstruction and Development (EBRD) said Monday.
The report said that economies of Central and South Eastern European countries will likely expand on average 3.1 percent this year, after growth likely slowed to 2.6 percent in 2012 from 4.6 percent in 2011. The latest forecast is, however, lower than 3.2 percent estimated earlier.
EBRD noted that with the likelihood of a further deterioration of the Eurozone crisis diminishing, downside risks to the overall outlook have continued to recede. Chances of an improvement in the currency bloc's economy are increasing, helped by policy decisions taken within the region in recent months.
"For the first time in a long while we are now seeing the possibility of a reduction in the risks facing emerging Europe, especially the risks from the Eurozone. It is too early to sound the all-clear but there are signs of stabilization," EBRD Chief Economist Erik Berglof said.
Among the major economies in Emerging Europe, Poland is set to log 1.5 percent growth this year, slower than 2.2 percent estimated earlier and weaker than 2 percent recorded last year. Hungary, which entered a renewed recession with an overall contraction of about 1.5 percent last year, will log a smaller contraction of 0.1 percent in 2013.
The bank, meanwhile, raised its forecast for Baltic countries for both 2012 and 2013 relative to the previous outlook in October. Romania is seen expanding 1.4 percent this year after recording only negligible growth in 2012.
At the same time, Russia's growth is estimated at 3.5 percent in 2012 and is expected to remain at that level in 2013 and the medium term, the report said.
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