LONDON, Nov. 3 (Xinhua) -- The European Bank for Reconstruction and Development (EBRD) said on Thursday in its latest economic report that it expected a modest pick-up in growth across the nations in its regions, despite continued global turmoil including the impact of Brexit.
Depressed commodity prices and security concerns are putting a brake on growth in some EBRD countries while geopolitical tensions and weakness of global trade continue to weigh on others, journalists at a press conference at the bank's London headquarters were told.
Meanwhile, the British vote to exit the European Union (EU), while raising questions about the impact on growth in the eurozone, has had a positive short-term effect on capital flows to emerging markets.
The economy of the EBRD region, which stretches from southern and eastern Mediterranean countries to Eastern Europe and Central Asia, is forecast to grow 1.6 percent this year (an upward revision of 0.2 percentage points since the previous EBRD forecast in May) and 2.5 percent next year, compared with 0.5 percent growth in 2015.
Sergei Guriev, chief economist at the EBRD, said that the Brexit vote had influenced monetary policies across the globe, and as a result "markets no longer expected that the U.S. will aggressively increase interest rates".
Guriev said that as a result real yields on government debt was low and for Germany and Britain it was negative.
