EBRD IMPORVES FORECAST FOR LITHUANIA
According to the newest report by European Bank of Reconstruction and Development (EBRD) the economy of Lithuania will witness the drop of 1 % instead of an earlier forecast of 1.5 % this year, and will grow by 3 % next year (forecast not changed).
In the report of EBRD it is asserted that this economy contraction is mainly due to the decrease in fixed economy assets, which occurred due to the closure of nuclear power plant in Ignalina at the end of last year.
The economy of Latvia is expected to shrink by 2 % in 2010, and grow by 3 % in 2011. Forecasts for Estonia were also adjusted to the growth of 0.2 % instead of a 0.4 % fall and a 3.3 % growth in 2011.
EBRD lowered forecasts for the European economy by 0.2 % (from 3.7 % to 3.5 %), but the economy is expected to grow by 3.9 % in 2011.
