The World Bank forecast economic growth across Europe and Central Asia to ease this year reflecting the slowdown in both Russia and Turkey.
According to the latest World Bank Economic Update for Europe and Central Asia, released Wednesday, growth in the emerging and developing countries of Europe and Central Asia is set to ease to a four-year low of 1.8 percent this year from 3.2 percent in 2018.
Nonetheless, the aggregate growth mask the diverged performance across the region, the agency cautioned. The growth rate is projected to improve to 2.7 percent in 2020 and to 3 percent in 2021.
Although regional growth is forecast to pick up in 2020-21 with improvement in Turkey and Russia, there are significant downside risks to outlook, especially from a sharper than expected slowdown in most trading partners.
Turkey's economy is forecast to remain flat this year, before rising to 3 percent next year. The Russian Federation's growth is expected to ease to 1 percent this year before rising to 1.7 percent in 2020.
Further, the report underscored the need to boost productivity growth and increase investment in the region.
"Migration can contribute to prosperity in the region," said Asli Demirguc-Kunt, World Bank chief economist for Europe and Central Asia.
"Migrants disproportionately tend to be of working age and can therefore ease demographic pressures by increasing the size of the labor force, raising productivity, and boosting growth," chief economist added.
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