The European Bank for Reconstruction and Development (EBRD) revised upward its GDP growth forecasts for Armenia from 4.5% to 4.6%, according to the EBRD economic outlook for Eastern and Central Europe, as well as Central Asia.

4% average growth will be recorded in 2010 in economies of Eastern Europe and Caucasus, what is explained by the “effect of low base” (7.8% decrease was recorded in these countries in 2009).

Meanwhile, EBRD forecasts 3.5% average economic growth in 2010 for the entire region (30 countries), after 6.1% drop in 2009 and against 2.5% growth predicted in October.

The growth in forecasts is conditioned by stronger indices of four economies of the region – Poland, Turkey, Russia and Kazakhstan – due to increase in prices for raw materials and resumption of capital flows into developing markets.

At the same time, the economic recovery will proceed at a slow pace for majority of the region’s countries, which do not export raw materials. Besides, GDP drop is expected in some countries (Hungary and the Baltic countries) in 2011.