Russia-Ukraine war, cost-of-living crisis reduces growth prospects in emerging Europe and Central Asia

The economic activity in the Europe and Central Asia region is likely to remain subdued this year due to the ongoing fallout from Russia’s invasion of Ukraine, persistent high inflation and tighter financial conditions, said the World Bank’s Economic Update for the region released on Thursday. However, the report noted that regional output is expected to grow by 1.4 percent this year, which is a substantial improvement from the previously anticipated 0.1 percent.

“The positive, though deeply depressed, economic activity in 2023 reflects…