EBRD holds Russia growth forecast 4.2%

The European Bank for Reconstruction and Development (EBRD) maintained its forecast for Russia's 2012 gross domestic product growth at 4.2 percent, the bank said on Friday. The bank also maintained its 2013 Russian GDP growth forecast at 4.3 percent. The EBRD expects the debt crisis in Europe will continue to negatively influence emerging market countries which cooperate closely with the EU states. Although the latest data shows capital outflow in the EU may stabilize, negative real credit growth and falling exports are hampering EU economic growth. The Russian Economic Development Ministry cut its 2012 GDP forecast to 3.4 percent from 3.7 percent in April, while the International Monetary Fund (IMF) expects Russia's economic growth this year to reach four percent. In 2011 Russia’s gross domestic product grew by 4.2 percent, the world’s third highest growth rate among leading economies, according to the ministry.