World Bank: Ukraine and Russia Enhance Growth Forecasts for Eastern Europe and Central Asia

The World Bank raised its economic growth forecast for 2023 in Eastern Europe and Central Asia to 1.4 percent from a previous estimate of 0.1 percent, noting improved prospects for both Russia and Ukraine despite the ongoing war between them. The forecasts, released days before the World Bank and International Monetary Fund hold their annual meetings in the spring, indicate that the Ukrainian economy is expected to grow by 0.5 percent this year after a staggering contraction of 29.2 percent in 2022 when Russia began its attack on Ukraine. It was noted that the reopening of Ukrainian ports on the Black Sea and the resumption of grain trade, along with significant support from donors, are helping to bolster economic activity this year. The Russian economy contracted by 2.1 percent last year, which is significantly less than the 3.5 percent contraction the World Bank predicted in January.