{
  "id": 12817449,
  "title": "Slower growth in Europe and Central Asia",
  "url": "https://urgent.news/2026/10/08/slower-growth-in-europe-and-central-asia",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T07:04:21.000Z",
  "source": {
    "name": "Emerging Europe",
    "slug": "emerging-europe",
    "url": "https://emerging-europe.com/slower-growth-in-europe-and-central-asia/"
  },
  "original_language": "en",
  "account": "The World Bank has forecast a slowdown in economic growth for Europe and Central Asia, with expansion expected to decelerate to 2.2% in 2026 from 2.6% in 2025. This reduction in growth is widespread across the region, driven by factors such as higher energy prices, market uncertainties, and weaker performance in trading partners.\n\nExcluding Russia, which contributes around 40% of the region's output, growth is anticipated to slow to 3% in 2026 from 3.7% in 2025. Despite these challenges, the World Bank maintains confidence in the region's resilience, crediting reduced energy intensity, government policies, and strong domestic demand.\n\nTo address demographic pressures and bolster productivity, the institution advises countries to leverage artificial intelligence (AI) by enhancing foundational education and managerial skills. This adaptation, coupled with improved labor market and social protection institutions, could help mitigate the impact of a shrinking working-age population.\n\nNotably, Central Asia is the fastest-growing subregion within Europe and Central Asia, with an estimated expansion of 5.8% in 2026, with Kyrgyzstan and Uzbekistan leading the growth at 9.6% and 7.9% respectively. Meanwhile, the Western Balkans and Poland are expected to witness a strengthening of growth rates in 2026, with 3.1% and 3.6% respectively.\n\nHowever, growth in Ukraine is projected to decelerate to 1.2% due to ongoing infrastructure damage and export disruptions. The region is grappling with elevated inflation driven by higher energy costs, sluggish EU growth, and increased competition. The World Bank highlights additional risks stemming from potential trade disruptions, ongoing conflict in Ukraine, surging energy and transport costs, tighter global financing conditions, and adverse weather events.",
  "summary": "Harnessing AI could improve productivity and help offset demographic pressures. Amid higher energy prices, heightened uncertainty, and weaker economic expansion in trading partners, growth in Europe and Central Asia is likely to slow to 2.2 per cent in 2026 from 2.6 per cent in 2025, according to the World Bank’s latest Europe and Central Asia […] Slower growth in Europe and Central Asia was…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "BIS Central Bank Speeches",
        "title": "Reinforcing Europe’s financial resilience – and growth potential",
        "url": "https://urgent.news/2026/10/08/reinforcing-europes-financial-resilience-and-growth-potential",
        "published": "2026-10-08T00:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}