"The European Bank for Reconstruction and Development (EBRD) has raised its forecast for its regions for 2021 to 5.5 per cent in its latest Regional Economic Prospects report.

While this represents an upward revision of 1.3 percentage points over its June forecast following a strong performance in the first half-year, the Bank warns of serious threats ahead.

High commodity and energy prices, tight labour markets, supply chain disruption and currency depreciations in some EBRD economies have begun to push up inflation even before the latest spike in Covid-19 infection cases. On average, inflation in the EBRD regions exceeded its end of 2019 levels by 3 percentage points in September 2021. In response, a number of central banks in the EBRD regions have raised policy interest rates."

The report was prepared by the EBRD in English language. Click on respective links to access the full version of the report and presentation.

Source: EBRD

Illustration: EBRD