High Growth for Former Soviet States in 2007

Nov. 8, 2007
The EBRD has forecast average growth of 7% in its countries of investment in 2007, which compares with a rate of 6.9% for 2006.

The European Bank for Reconstruction and Development (EBRD) said Nov. 8 that former Soviet states are on course to register record-high annual economic growth this year. "Economic growth across the EBRD region is expected to hit a record high this year but the global credit crunch that began this summer could result in slower growth in the longer term," it said in its Transition Report 2007.

The EBRD has forecast average growth of 7% in its countries of investment in 2007, which compares with a rate of 6.9% for 2006. Growth was forecast to moderate to 6.1% in 2008, it noted. "Economic growth across the transition region (in 2007) has been underpinned by ... strong domestic demand, rising investment including foreign direct investment, significant remittances from workers abroad, rapid growth in domestic and foreign bank lending and, in some cases, high energy prices," the report said.

It added that the broad economic outlook remained favorable for the transition region, while the EBRD also noted that it was "in the relatively enviable position of facing the recent financial market problems from a position of economic strength." But the report added that the fall-out from the crisis-hit U.S. mortgage market was nevertheless "likely to have an impact" on growth across transition states owing to rises in the cost of external finance and a reduction in foreign loans being made available.

"This might help the overheated economies in the transition region cool down; however, in a less benign scenario, countries with high external funding needs may experience a stronger economic downturn," the report added.

Copyright Agence France-Presse, 2007

Popular Sponsored Recommendations

Powering Up Productivity: The Transformative Power of AP Automation in Manufacturing

Oct. 25, 2023
Discover how AP Automation is revolutionizing the manufacturing industry, driving efficiency, cost savings, and security. In today's world, automation is the key to staying competitive...

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Industrial Manufacturers: How to Propel Growth by Reducing Business Costs

May 17, 2023
Are you ready to propel the growth of your industrial manufacturing company? Download this guide to receive useful insights on how to reduce costs and maximize profit.

State of Sales Report

Sept. 12, 2023
Discover the latest insights driving productivity and efficiency for more than 7,700 sales leaders and professionals.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!