Europe and Central Asia Economic Update

Economic growth slowed sharply last year in Europe and Central Asia, as Russia’s invasion of Ukraine, a surge in inflation, and the sharp tightening of monetary policy and financial conditions hit private consumption, investment, and trade. The marked increase in food and energy prices boosted inflation to a pace not seen in 20 years. This update summarizes recent developments and presents the economic outlook for the Europe and Central Asia region. It also focuses on the uneven burden of inflation, as the poorest households faced a higher inflation than the richest households.