World Bank (WB) published a new report "Europe and Central Asia Economic Update, Spring 2023: Weak Growth, High Inflation, and a Cost-of-Living Crisis".

According to experts, the armed conflict in Ukraine has led to a significant reduction in the dynamics of socio-economic development of the countries of Europe and Central Asia (ECA). Key impacts include higher inflation, disruptions in energy supplies, and a marked tightening of monetary policy.

According to WB forecasts, real GDP in the ECA region will grow by 1.4% in 2023. Excluding Russia and Ukraine, economic growth in the ECA region will slow to 2.4% in 2023 (compared to 4.7% in 2022). In the event of an escalation of hostilities on the territory of Ukraine, a further increase in food and energy prices, the indicators may worsen. To increase the production potential, the World Bank recommends that national governments take the necessary measures to increase labor productivity, improve the quality of education, stimulate innovation and investment activity, and develop "green" projects.