World Bank sees growth in Europe and Central Asia slowing to 2.2% in 2026

The World Bank expects economic growth across Europe and Central Asia to slow to 2.2% in 2026, citing a combination of higher energy costs, broader global economic uncertainty and softer demand from the region's trading partners.

The projection marks a downgrade in the pace of expansion for a region that includes a mix of European Union member states and economies across Central Asia, many of which remain sensitive to swings in energy prices and external trade conditions.

Rising energy costs have been a persistent drag on economic activity in parts of the region, affecting both household spending power and the cost base of energy-intensive industries. At the same time, uncertainty in the global economy, combined with slower growth among major trading partners, has reduced demand for exports from the region.

The World Bank's forecast reflects a broader pattern seen in several of its recent regional outlooks, in which external pressures continue to temper growth prospects even as individual economies show pockets of resilience.