UniCredit Lowers SEE Economic Growth Forecast to 3.0-3.5% for 2009

The bank expects a 3.0% or a bit higher, 3.5%, economic growth for the region next year under its latest revision, Stanislav Georgiev, chief financial officer and board member of UniCredit's unit in Romania, told the 2nd Southeast Europe Financial Services Forum organised by SeeNews.

Despite the expected economic slowdown, the region is quite positively placed in comparison with more industrialised countries, Georgiev said.

According to him, a major hindrance to growth will be the countries' sensitivity to capital inflows and the cost of risk.

UniCredit said in its latest fourth quarter report on central and eastern Europe that economic growth in the region will slow down to 4.5% next year from 6.8% projected for 2008 as fears of overheating weigh.