By Ovunc Kutlu
ISTANBUL (AA) - Europe and Central Asia economies are expected to grow 2.8% this year, down from 3.3% last year, according to the World Bank on Thursday.
The main reasons behind the expected slowdown this year are weaker global economy, tight monetary policy, slowdown in China and lower commodity prices, it said in a statement.
Other reasons include slower-than-expected recovery in key trading partners, restrictive monetary policies, and the possibility of geopolitical developments that could further dampen growth across the region, it added.
"Countries of Europe and Central Asia continue to confront multiple crises, exacerbated by a challenging global growth environment,” said Antonella Bassani, World Bank vice president for the Europe and Central Asia region.
“Reviving productivity growth by stimulating business dynamism and improving resilience against the risks from climate change can help protect the region’s people and accelerate economic growth," she added.
The World Bank said sluggish growth is expected to further delay the region's recovery from recent shocks, including Russia’s war on Ukraine.
The pace of economic recovery in Ukraine is projected to slow to 3.2% this year, from 4.8% in 2023.
Russia's economy is forecast to expand 2.2% in 2024, down from 3.6% last year, while Türkiye's economy is estimated to expand 3.6% next year.