Europe and Central Asia Economic Update

The Russian Federation’s invasion of Ukraine has triggered a massive human displacement crisis, adding to already historically high global refugee levels. Output in Europe and Central Asia is forecast to contract 0.2 percent in 2022, reflecting negative spillovers from the invasion. Escalating geopolitical tensions have triggered a possible energy crunch in Europe. If the war escalates, regional output could decline even further. This update summarizes recent developments and presents the economic outlook for the Europe and Central Asia region. It also focuses on social protection, which is a key policy instrument for protecting workers and households from adverse shocks faced by the region, and on the policy options that countries have to address the energy crisis.