The European Bank for Reconstruction and Development (EBRD) released a report on Monday detailing the effects from Russia's downturn that have been worsened by falling oil prices.
The EBRD said countries that are within the regions served by the EBRD can expect to contract by an average of 0.3 percent in 2015, compared with a September forecast for growth averaging 1.7 percent. Economists for the bank expect that Russian gross domestic product will shrink by nearly 5 percent, which had been struggling financially prior to the recent fall in oil prices. Prior estimates predicted a 0.2 percent contraction. Other countries that have been hit hard by oil price fluctuations include Kazakhstan, Azerbaijan and Turkmenistan.
There is optimism for countries in the form of lower energy costs, as trade enhancements can buffer oil's impact on emerging economies in the region.
Turkey is expected to see a 3 percent growth rate with the help of lower energy-import costs, but weakening external demand remains a factor to weigh on growth.
Economic struggles are expected to continue in Ukraine due to continued conflict. The report also said international sources of financing are not enough or won't come through soon enough.
More Stories
- EUROPEAN INVESTMENT BANK: Bosnia and Herzegovina: EIB provides €340 million to advance works on northern part of Corridor Vc
- ABN AMRO SERVICES COMPANY: Fempower Your Growth: like tindering with female entrepreneurs
- EUROPEAN INVESTMENT BANK: Egypt: Team Europe - EIB and Banque Misr work together to support private businesses and speed up the recovery of SMEs from COVID-19
- ASIAN DEVELOPMENT BANK: ADB, NNS Sign Loans to Build Milestone Solar Power Project in Uzbekistan
- ASIAN DEVELOPMENT BANK: $123 Million ADB Loan to Help Build Elevated Walkways in Manila
- EUROPEAN INVESTMENT BANK: Germany: EIB provides €15 million of funding to IDnow
- ASIAN DEVELOPMENT BANK: CAREC Endorses Long-Term Strategy to Promote Safe, Sustainable, and Inclusive Tourism
- EUROPEAN INVESTMENT BANK: EIB Group provides €150 million to support artificial intelligence companies
- ASIAN DEVELOPMENT BANK: ADB Approves $430 Million to Help Rehabilitate Power Distribution Networks in Uttar Pradesh, India
- EUROPEAN INVESTMENT BANK: Greece: EIB backs EUR 470 million road safety scheme