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EBRD Raises E. Europe Growth Forecasts For 2010, 2011

The European Bank for Reconstruction and Development (EBRD) has raised its 2010 and 2011 economic growth forecasts for Eastern Europe.

The London-based bank said in a statement that it predicts "overall growth in the region of 4.2 percent in 2010 and 4.1 percent in 2011."

That compares with the previous EBRD forecasts of 3.5 percent and 3.9 percent for the region.

However, the bank warned that not all countries will perform equally and that "the region remains sharply divided between countries benefiting from rising commodity prices and capital inflows -- and others that are expected to remain in recession or see only a feeble recovery in 2010."

The region, which includes Albania, Croatia, Russia, Turkey and Ukraine, contracted by 5.5 percent last year due to the fierce global economic downturn.

compiled from agency reports