World Bank sees weak growth for countries in central Asia in 2023

The World Bank has forecast that countries in Eastern Europe and Central Asia will return to weak growth in 2023. The World Bank said collective gross domestic product (GDP) in Europe and Central Asia region was now expected to contract 0.2% in 2022 and grow by 0.3% in 2023 due to spillover effects from Russia’s invasion of Ukraine. The bank said the outlook for its European and Central Asian regions is subject to “considerable uncertainty” with a prolonged, or intensified war causing greater physical and environmental damage and fragmentation of trade and investment. It said that the risk of financial stress also remains elevated, given high debt levels and inflation. The bank also warned that a cut-off of Russian energy to the European Union would tip them into recession next year.