The World Bank warned this Tuesday: Growth in Europe in 2023 and 2024, russian economy and the significant recession Ukraine has experienced this year as a result of the occupation. As a result, the agency expects growth in the emerging economies of Europe and Central Asia to remain almost flat at 0.1% in 2023.
Except for Russia and Ukraine, the region will grow by 2.1%According to the new growth outlook released by the Development Bank on Tuesday. “The near-term economic outlook is particularly uncertain, with the risks of baseline forecasts tilting down,” the agency said.
One of the main points of friction identified by the bank, energy marketsinterrupted after the Russian invasion of Ukraine. The agency also warns: overall increase interest rates Fighting inflation discouraged economic activity.
Both reasons make World Bank analysts lowers growth expectations for 80% of countries In Europe and Central Asia, with the expected slowdown in growth in China, a situation that will worsen especially in the Caucasus region.
Agency estimates assume: The war in Ukraine will continue as beforewithout an increase in intensity, at least in the short term.
According to analysts, Russia will shrink by 3.3 percent Although it will grow slightly in 2023, 1.6% in 2024. If the situation continues like this, the expectations for Ukraine, which will grow by 3.3% this year, are a little more rosy. However, the agency warns that the war’s damage to infrastructure and soil will hinder economic development in the region in the long run.
Finally, development bank officials, Turkey will grow moderately 2.7% in 2023, above all with the increase in public spending before the June elections.