Economic growth in eastern Europe and the former Soviet Union will slow following the upheavals in global financial markets but the region will pull through the turmoil better than most parts of the world, says the European Bank for Reconstruction and Development.

The bank yesterday announced a cut in its gross domestic product growth forecast for the region for 2008 from 6.1 per cent to 5-5.5 per cent, due to an expected slow down in the US and western Europe. ”Our region is holding up quite well, but there will be an impact on growth,” said Erik Berglof, chief economist.