Economic Developments & Outlook
Economic growth in the Europe and Central Asia region slowed to 3.1% in 2018, and is projected to decline to 2.1% in 2019, amid slowing global growth and uncertain prospects.
Growth in countries across the region varied. Russia, the largest economy in the region, contributed strongly to regional growth, alongside accelerating growth in Albania, Hungary, Poland, and Serbia.
Turkey, meanwhile, experienced a severe slowdown, triggered by financial market and currency pressures – growth is forecast at 1.0% for 2019, a major decline from 7.4% in 2017.
Regional growth is expected to pick-up modestly in 2020-21, as an anticipated gradual recovery in Turkey offsets moderating activity in Central Europe.
However, the region is facing a range of long-term challenges including aging populations, declining productivity, weakening investment, and climate change.
Last updated on April 5, 2019