‘Russian gas’ warning to global growth

While the European Bank for Reconstruction and Development (EBRD) lowered its economic growth forecast for emerging economies in Europe, Central Asia and North Africa, it warned that if Russia suddenly stopped its natural gas exports, the gross domestic product (GDP) could fall to the levels seen before the coronavirus epidemic. .

According to the news in Hürriyet newspaper; EBRD updated its economic forecasts for nearly 40 countries in which it operates in March, and lowered its economic growth forecast for developing European countries, Central Asia and North Africa from 1.7 percent to 1.1 percent. The contraction in the Ukrainian economy, which was predicted to be stronger than the forecasts, was effective in the decrease. Although it is not the EBRD’s baseline scenario, it is estimated that per capita GDP in the region will contract by 2.3 percent this year and by 2 percent next year if the natural gas flow from Russia is suddenly cut off.


The EBRD kept its growth forecasts for Turkey unchanged due to the public expenditures expected to continue before the elections. The EBRD continued to forecast growth for Turkey, the country to which it lends the most, at 2 percent for this year and 3.5 percent for 2023. In the report published by the EBRD, it was stated that despite the expected loss of momentum in the regional economy, growth will be at these levels due to the public expenditures foreseen before the elections planned to take place in 2023.


Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.

*The article has been translated based on the content of bigpara- GÜNDEM by bigpara.hurriyet.com.tr. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!