Bulgaria and Romania are the two countries in Eastern Europe, which will in particular not maintain their expansion due to fiscal restraints and will both see growth of 3.5 percent, down from 4.5 percent and 5.3 percent respectively in 2001, the European Bank for Reconstruction and Development forecast. Eastern Europe and the former Soviet Union will see growth slow to 3.3 percent in 2002 from 4.3 percent in 2001, the report says. Characterising the region's performance as "good but not exceptional", the bank's regular report ahead of its annual meeting said surprisingly buoyant domestic demand and investment had enabled stronger economic growth than most emerging markets. The annual meeting of the EBRD, which was set up to help the region make the transition from communism to the free market, starts in Bucharest on Sunday.