You're reading: EBRD lowers forecast for Ukraine’s GDP growth in 2012 from 3.5% to 2.5%

The European Bank for Reconstruction and Development (EBRD) has revised down the outlook for Ukraine's GDP growth by 1 percentage point, to 2.5%, the bank said in a press release issued on January 24.

The bank worsened the outlook for Eastern Europe and the Caucasus, with 2012 growth in Eastern Europe and the Caucasus now seen at 2.6%, compared with the previous 3.2%.

"The largest economy in the region, Ukraine, is likely to be quite affected by the eurozone crisis, with the most recent industrial production data already suggesting a slowdown," the EBRD said in a press release.

The EBRD expects the economy in Ukraine to expand by 2.5% in 2012, down from an estimated 5% per cent in 2011 and compared with an October forecast of 3.5% for 2012.

In December 2011, the World Bank halved its forecast for Ukrainian GDP growth in 2012 from 5% to 2.5%.

Meanwhile, the Ukrainian government expects the country’s economy to grow 5-6% this year.