KIEV, Jan. 24 – The European Bank for Reconstruction and Development has lowered its outlook for Ukraine's GDP growth by 1 percentage point, to 2.5%.

The bank also worsened the outlook for Eastern Europe and the Caucasus, with 2012 growth in Eastern Europe and the Caucasus now seen at 2.6%, compared with the previous 3.2%.

"The largest economy in the region, Ukraine, is likely to be quite affected by the eurozone crisis, with the most recent industrial production data already suggesting a slowdown," the EBRD said in a press release.