LONDON, May 10 (Xinhua) -- The European Bank for Reconstruction and Development (EBRD) forecast stronger growth this year and next across its regions of operations.
On average, economic growth will rise to 2.4 percent in 2017 and to 2.8 percent in 2018, compared with expansion of 1.8 percent last year.
The EBRD forecast in its latest Regional Economic Prospects report published on Wednesday that higher oil prices and Russia's recovery from recession would boost economic prospects in its regions of operation, predominantly eastern Europe, central Asia and the Mediterranean.
On the back of developments in Russia and on the commodity markets, growth in eastern Europe and the Caucasus is also forecast to accelerate and activity in Central Asia is likely to stabilize at slightly higher levels, the London-based development bank reported.
Turkey, however, is expected to see a slowdown in growth during 2017, partly reflecting security and geopolitical risks that have also led to a downward revision in EBRD forecasts for those in the southern and eastern Mediterranean.
The latest forecasts show a narrowing of an East-West growth gap that has characterized the economies of the EBRD regions in recent years after a stronger upturn of growth in the East.
In those western regions, growth in central Europe and the Baltic states is now expected to accelerate slightly in 2017 to around 3 percent after an investment-driven dip in 2016. Growth will remain at the same level in 2018.
In south-eastern Europe, average growth is also forecast to reach 3 percent. Greece is expected to return to growth as reforms advance further and business confidence gradually improves.
