The World Bank said economic output for its regional grouping of countries in eastern Europe and central Asia is forecast to contract by 0.2% in 2022 and return to weak growth of 0.3% in 2023 due to spillover effects from the war in Ukraine.
The development lender said the outlook for its Europe and Central Asia Region is subject to “considerable uncertainty” with a prolonged, or intensified war causing greater physical and environmental damage and fragmentation of trade and investment.
“The risk of financial stress also remains elevated, given high debt levels and inflation,” the World Bank said.