EBRD raises 2011 growth forecast, warns of risks

ASTANA, May 20 (AFP): The European Bank for Reconstruction and Development (EBRD) Friday raised the growth outlook for its region but warned of mounting concerns associated with European sovereign debt problems. The EBRD said it was raising its 2011 growth forecast for its zone from 4.2 to 4.6 per cent. "Growth prospects for the economies in the EBRD region have improved, but concerns are growing about the possible fallout from sovereign debt problems in some euro zone countries and inflationary pressures are emerging as a new risk," the bank said in a statement. The London-based EBRD was formed in 1991 to help former communist nations in their transition to market economies. It tends to invest in private enterprises together with commercial partners across its zone.