The European Bank for Reconstruction and Development (EBRD) has released an updated Regional Economic Prospects forecasts.

According to it, the output in the bank’s regions is now expected to grow by 2.1% in 2023, down from the 3.0% predicted in its last report in September.

Growth forecasts have been adjusted downwards in more than half of the 36 economies in which the EBRD works. “High gas prices and persistent inflation continue to weigh on the economic outlook,” the report says.

Growth in the bank’s regions is expected to pick up to 3.3% in 2024.

“Output in eastern Europe and the Caucasus (excluding Ukraine) exceeded expectations in 2022, driven by high growth in Armenia and Georgia. Growth is, however, expected to slow to 2.7% in 2023 before accelerating moderately to 3.6% in 2024,” the report reads.

According to EBRD forecasts, in 2023 GDP growth in Armenia will be 4%, in 2024 - 4.8%.

In Georgia, according to the bank’s estimates, the economy will grow by 5% this year, and by 5.3% in 2024. In Azerbaijan, growth will be 2.5% and 2.7%, respectively.