World Bank – Europe and Central Asia Economic Update, Spring 2024

In the World Bank's Europe and Central Asia Economic Update for Spring 2024, it is noted that growth in the region increased to 3.3 percent in 2023, driven by a shift from contraction to expansion in Russia and Ukraine, as well as a stronger recovery in Central Asia. However, excluding these countries, growth weakened to 3.1 percent due to various factors such as a slowdown in major trading partners and tight financial conditions. Inflation has fallen sharply, but price levels remain higher than in previous years. Economic activity is expected to slow in 2024 as a result of a weaker global economy, China's slowdown, and lower commodity prices. Despite some regions experiencing a decline, Central Europe and the Western Balkans are projected to see strong growth boosted by EU funds. The outlook faces challenges such as slow recovery in key trading partners, restrictive monetary policies, and geopolitical tensions which could impact growth in the region.