In its latest forecast report for the Central and Eastern Europe, Raiffeisen said the EU-17 bloc of countries that use the euro is likely to see a “more severe recession” than previously estimated.
The Austrian lender predicts the economy in the region will decline by 1% in 2012, from a growth of 1.5% estimated in 2011.
In southeastern Europe, Raiffeisen expects the economic growth will slow down to 0.4% in 2012, from 2% this year.