EBRD names risks for economic growth in East Europe, Caucasus

Eastern Europe and the Caucasus region are facing great uncertainty due to the Russian-Ukrainian war, Report informs with reference to the Regional Economic Prospects of the European Bank for Reconstruction and Development (EBRD).

The entire region remains very sensitive to the protracted war in Ukraine and tensions between Armenia and Azerbaijan, which maintains risks associated with economic development. Due to the situation in Ukraine, it is assumed that real production in the region this year will reach about 70% of the level of 2021.

Inflation will continue to slow down but remain high throughout the region.

An improved global outlook in 2024 will support economic activity in the Caucasus.