THE LATEST GDP-growth estimates released by the European Bank for Reconstruction and Development (EBRD) for countries in central and eastern Europe with strong ties to the eurozone indicater a major economic slowdown, especially for Slovakia and Hungary, the SITA newswire reported.
The EBRD now predicts that Slovakia’s economy will grow by only 1.1 percent in 2012, compared to its July prognostication of 4.1 percent.
The EBRD also reduced its estimate of economic growth in Slovakia for 2011 from its previous forecast of 3.7 percent to 3.1 percent.
The forecast for economic growth in Hungary this year was reduced to 1.1 percent and was cut for 2012 to 0.5 percent.
For the entire region the EBRD is now predicting GDP growth of only 4.5 percent in 2011 compared to its July estimate of 4.8 percent, and it predicts that economic growth for the countries of central and eastern Europe will average only 3.2 percent in 2012 compared to its 4.4-percent growth prediction in July.
The EBRD said that the main reason for cutting its growth estimates is Europe’s sovereign debt crisis, which the bank said is preventing countries in the region from fully recovering from the global economic crisis of 2008-2009.
24. Oct 2011 at 0:00 | Compiled by Spectator staff