Growth in Europe and Central Asia has been stronger than at any time since the global financial crisis. In 2017, GDP rose 2.7 percent and annual private consumption rose 2.5 percent.
Growth is forecast to moderate to 2.3 percent in 2018. However, increased capacity utilization, unemployment rates close to their 2007 levels, and average inflation now exceeding 2 percent are all signals that regional growth is likely to slow further.
During the economic upswing, many countries in the region increased their exports and reduced fiscal deficits, providing a cushion if cyclical headwinds materialize. Going forward, however, the region may face additional challenges navigating the global tightening of financial conditions and the rising tendencies toward protectionism.
Last updated on 27 September, 2018