The European Bank for Reconstruction and Development (EBRD) upgraded its forecast for Poland’s GDP growth in 2010. EBRD predicts that Polish GDP will reach 2.6% instead of 2.3% forecasted by the bank still in January.

According to the Saturday report, Poland will be among the fastest growing countries in the region, with Slovakia being the only state to grow at a faster rate (3.4%). Among the key components responsible for the growth are strong domestic demand and overall economic conditions in the eurozone which, according to the International Monetary Fund, is predicted to grow 1% in 2010. According to the EBRD report, Polish government should take prompt measures to reduce the structural fiscal deficit.

EBRD forecasts for Baltic States are considerably less optimistic, with Latvia, Lithuania and Estonia expected to slip into further recession in 2010.

According to EBRD, Poland’s GDP will grow 3.3% in 2011.