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EBRD: 3.6-3.8% growth in CEE and Southeast Europe in 2018

Strong GDP increase also in 2019, but expected to ease

09 May, 17:40
(ANSA) - BELGRADE, 09 MAG - The European Bank for Reconstruction and Development (EBRD) expects a 3.8 percent growth in Central Europe and the Baltic states and a 3.6 percent economic growth in Southeast Europe in 2018, EBRD said in its new Regional Economic Prospects report, published today. The Bank forecasted respectively a 3.3% and 3.5% growth for the two regions in 2019.

EBRD noted that in Central Europe and the Baltic states growth "is expected to moderate gradually, from 4.3 per cent in 2017 to 3.8 per cent in 2018 and 3.3 per cent in 2019, as skilled labour shortages constrain medium-term growth potential in central Europe." In south-eastern Europe, the economic growth "is also expected to ease but remain strong overall, with average growth declining from 4.1 per cent in 2017 to 3.6 per cent in 2018 and 3.5 per cent in 2019," the report said.

In 2018, Slovenia and Poland are expected to register the highest growth rate (4.0%) in the Central Europe and the Baltic states area, followed by Slovakia (3.9%), Estonia and Hungary (3.8%), Latvia (3.5%), Lithuania (3.2%) and Croatia (2.7%). This year, the highest growth rate in the South-eastern Europe region is expected to be recorded in Romania (4.6%), followed by Albania (3.8%), Kosovo (3.7%), Bulgaria (3.6%), Bosnia and Herzegovina and Montenegro (3.3%), Cyprus (3.2%), Serbia (2.9%), Macedonia (2.5%) and Greece (2.2%).

The EBRD, which tracks 37 countries spanning from Estonia to Mongolia, has at the same time warned that growth could have peaked in many countries and suggested to push forward structural reforms "of product, capital and labour markets." (ANSA).

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