Developing economies in Europe and Central Asia face slowdown amid energy pressures

Wednesday 08 April 2026 - 13:40

Emerging and developing economies across Europe and Central Asia are expected to experience slower growth this year, according to a new assessment by the World Bank.

The report highlights the impact of rising energy prices, driven in part by geopolitical tensions in the Middle East, which have disrupted global supply and increased costs for businesses and households. While a recent easing of tensions has brought some relief, the economic effects are likely to persist in the short term.

The region—spanning countries such as Kazakhstan, Uzbekistan, Poland, Romania, Turkey, and Ukraine—includes a diverse mix of economies with varying levels of resilience. However, many share a dependence on imported energy, making them particularly vulnerable to price volatility.

According to the outlook, overall growth in the region is projected to slow compared to the previous year. Higher energy costs are expected to increase inflationary pressures, reduce consumer spending, and strain public finances in several countries.

While energy-exporting nations may benefit temporarily from higher prices, most economies in the region are likely to face budgetary challenges and external imbalances. Policymakers are therefore under pressure to implement measures that support stability while maintaining growth.

Economists note that the situation remains uncertain, as future developments in global energy markets and geopolitical relations will play a crucial role in shaping economic outcomes. Strengthening resilience and diversifying energy sources are expected to be key priorities for the region moving forward.