Europe development bank eyes stronger recovery in COVID-hit regions

Europe development bank eyes stronger recovery in COVID-hit regions

LONDON: Europe's development bank yesterday forecast better-than-expected economic recovery this year across its geographical regions of investment following COVID-induced slumps. The European Bank for Reconstruction and Development revealed its revised estimates on the occasion of its 30th annual meeting, which is being held online this week due to the coronavirus pandemic.

The EBRD predicts average growth of 4.2 percent this year in the 38 emerging economies in which it invests, up from an earlier forecast of 3.6 percent. The bank was founded in 1991 to help former Soviet bloc countries switch to free-market economies but has since extended its reach.

"The recovery of the emerging economies in eastern Europe, central Asia and northern Africa is gathering pace following the COVID-19 pandemic,“ the EBRD said in a statement which cited the beneficial impact of vaccination. The institution, which invests alongside the private sector, then expects 3.9-percent expansion next year.

'Economies have restarted'

"The increasing rollout of vaccination programmes and improvements in the public health situation have allowed for a gradual withdrawal of social distancing measures and other restrictions,“ the bank said. "As a result, economies have restarted.“ Higher commodity prices had meanwhile handed a major boost to the revenues of commodity-exporting nations. Average activity in