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The World Bank forecasts regional growth across emerging and developing economies of Europe and Central Asia to slow to 2.8% in 2024. Regional output growth is likely 'to remain broadly unchanged in 2025,' the institution said in a new report released Wednesday. Restrictive monetary policies, geopolitical tensions and sluggish recoveries in major trading partners are headwinds to growth, according to the World Bank.

The region is still trying to recover from major shocks including the ongoing Russia-Ukraine war, the pandemic and the 2022 cost of living crisis. 'The private sector in several countries in the region faces barriers, which hamper its ability to expand and innovate,' said Ivailo Izvorski, World Bank Chief Economist for Europe and Central Asia region.

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