Montenegro: 3.1% Economic Growth Predicted in Montenegro

The European Bank for Reconstruction and Development (EBRD) is forecasting that the Montenegrin economy will grow at the rate of 3.1% in 2011. This is an improvement from an earlier 2.5% forecast made in October.

3.1% is the second strongest economic growth expected in the region, exceeded only by Macedonia’s forecasted growth of 3.2%.  The Serbian economy is predicted to grow by 3.0%, followed by Bosnia-Herzegovina at 2.2%, Croatia at 2%, and Slovenia at 1.7%.

The report, Regional Economic Prospects in EBRD Countries of Operations: January 2011, states that Montenegro has managed to weather the worst of the recent crisis and that Montenegro’s recent elevation to EU candidate status may boost investor confidence.
Read more: Daily News Montenegro: Daily News from Montenegro

Azerbaijan: EBRD updates projections for economic growth in Azerbaijan

The European Bank for Reconstruction and Development (EBRD) has updated forecasts for economic growth in Azerbaijan, according to which the real GDP growth at the end of 2012 is expected to be two percent and forecast is three percent for 2013, the bank said on Monday.

"Diversification of the economy is important, as the risks associated with dependence on the oil sector became apparent when oil prices in the world markets decreased. However, unexpected macroeconomic risks continue to mitigate a very strong financial position of Azerbaijan," the bank says.

According to experts of the Bank, the decline in oil production in Azerbaijan was partially offset by strong growth in the non-oil sector, which was mainly stimulated by the budgetary expenditure.

According to the report, the volume of foreign direct investment is projected at 1.4 percent of GDP in 2012.
Current account surplus of the balance of payments is expected for the year in the amount of 26.5 percent of GDP.

EBRD forecasts consumer inflation at 1.5 percent in 2012.

Read more:EBRD updates projections for economic growth in Azerbaijan - Trend.Az

NYT/Reuters: EBRD Eyes Flaws In East Europe Model

For the complete report fromthe NYTimes.com click on this link

EBRD Eyes Flaws In East Europe Model

The flaws in Eastern Europe's model of growth have been exposed by the financial crisis and commodity-reliant countries like Russia must expand their industrial base to make them more resilient, the European Bank for Reconstruction and Development (EBRD) said in an annual report on Monday. The development bank, one of the biggest investors in a campaign to transform the region since the collapse of communism two decades ago, also said risks arising from financial integration must be better managed. It said countries had been over-reliant on foreign banks and inflows to drive growth in the boom years, leaving them highly vulnerable during the global credit crunch.

Forbes.com/Reuters: Bulgaria financially more stable than neighbours says EBRD

For the complete report from Forbes.com click on this link

Bulgaria financially more stable than neighbours says EBRD

Bulgaria is financially more stable than some of its neighbors but its economy would be deeply affected by the global downturn, the European Bank for Reconstruction and Development (EBRD) said on Tuesday. 'There can be no doubt that Bulgaria will be deeply affected like the other countries in Europe...by the downturn of the real economy,' Thomas Mirow, EBRD's president, told reporters during a visit to Sofia.