Europe and Central Asia Economic Update, Fall 2023: Sluggish Growth, Rising Risks

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Europe and Central Asia continues to be negatively impacted by the Russian Federation’s invasion of Ukraine, tighter global financial conditions, persistent inflation, and global economic fragmentation. Economic growth in the region is projected to remain weak relative to the long-term trend, delaying the convergence of living standards to those of high-income countries. The impacts of climate change are becoming a serious constraint on growth, as extreme weather events are affecting the region with increased frequency and severity. Economic growth for the emerging market and developing economies of the Europe and Central Asia region has been revised up to 2.4 percent for 2023. The pickup in growth reflects improved forecasts for Ukraine, Central Asia, Türkiye and Russia. Downside risks cloud the outlook. High inflation may persist amid heightened volatility in global commodity markets and a surge in energy prices. Global financial conditions may tighten further. And global growth, already the weakest on record for any five-year period since 1990, may slow further.
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Kasyanenko, Sergiy; Izvorski, Ivailo; Singer, Dorothe. 2023. Europe and Central Asia Economic Update, Fall 2023: Sluggish Growth, Rising Risks. © Washington, DC: World Bank. License: CC BY 3.0 IGO.
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