EBRD Chief Economist Willem Buiter says the favorable economic environment that propelled the region for most of last year is fading. He says falling world oil prices and the rising real value of the ruble means the pace of GDP growth in Russia will slow to about 3.4 percent for this year. Russia's economic performance could impact the growth of other former Soviet republics that are closely tied to the ruble. Meanwhile, with the global economy deteriorating, it could be more difficult for Eastern countries to obtain external financing than in the past. The forecasts were released as officials from across Eastern Europe and the former Soviet republics gather in London for the EBRD's annual board meeting.
Plenary sessions start today.
The EBRD says that overall GDP growth for Central and Eastern Europe, the Baltic States, Southeastern Europe and the Commonwealth of Independent States will fall to 3.7 percent this year from 5.4 percent last year.