Strong Rebound in 2021 Boosts Economies in Emerging Europe and Central Asia

• A surprisingly strong rebound in the first half of this year boosted economic activity in emerging and developing countries in the Europe and Central Asia region, with the regional economy now projected to expand by a better-than-expected 5.5% in 2021, says the latest edition of the World Bank’s Economic Update for the region, released on October 6^th. 
• The rebound was largely driven by a strong recovery in exports during the first half of this year, as activity in the Euro area bounced back and commodity prices rose sharply,  and  stronger domestic demand due to vaccinations and support packages. The boost to exports, however, may be fading due to the ongoing global and regional spread of more contagious COVID-19 variants, which has also dampened the recovery in regional domestic demand. 
• In 2022, regional growth is forecast to moderate to 3.4%, as external demand and commodity prices further stabilise, global growth plateaus, and pandemic stimulus is withdrawn. The outlook remains highly uncertain given the continuation of the pandemic, especially in the context of unequal vaccine access and hesitancy.

   (Source: World Bank)