Published on

03/06/2026 - 9:03 GMT+2

The European Bank for Reconstruction and Development (EBRD), which invests across emerging economies spanning central and eastern Europe, Central Asia, the Middle East and North Africa, has lowered its growth forecasts for its regions, citing the escalating conflict in the Middle East as a major source of economic disruption.

In its latest Regional Economic Prospects report, titled "Strai(gh)t talk", the EBRD forecasts aggregate growth across its regions at 3.1% in 2026, down from 3.4% in 2025 and 0.5% below the forecast published back in February.

Growth is expected to recover to 3.6% in 2027, although that projection is also slightly lower than previously anticipated.