Things were tough for Europe and Central Asia's economy last year. Russia's actions in Ukraine, prices going up a lot, and strict money rules made it harder for people to buy things, invest money, and do business. The cost of food and energy went way up, making prices go higher than they have in 20 years. This update talks about recent stuff that happened and what might come next for the economy in this region. It also looks at how different families had to deal with prices going up, especially the ones who didn't have much money.
Russia's move into Ukraine made things really bad for Ukraine's economy. It also affected how poor people are and how these places grow. In 2022, the amount of money people made from selling and buying things (the economy) slowed down a lot. It only went up by 1.2 percent because things like prices getting higher, problems with energy, and things not getting to where they're needed made it tough.
For this year, the economy isn't going to get a lot better. The total amount of stuff made (GDP) is predicted to go up by 1.4 percent. Russia's situation might improve a bit, and Ukraine's troubles might go down. But Turkey might find it hard to grow because of the big earthquakes it had in February. These earthquakes caused a lot of damage and hurt Turkey's economy.
If we don't count Russia and Ukraine, the other countries in Europe and Central Asia might see slower growth of about 2.4 percent this year. This is because it's harder to borrow money, prices are high, and not many other countries are buying things from them.
In 2022, prices went up a lot because of Russia's actions and also because of the COVID-19 pandemic. Prices are still high now. Even if we don't look at food and fuel, which often become more expensive, prices are still going up. It's going to take a while for prices to go down again.
Because it's harder to borrow money, many businesses won't be able to grow as much. This is because prices are high, and big banks might make borrowing money more expensive. The financial markets have been unpredictable and unstable, which means there's a higher risk of money problems. After governments spent a lot to help people during tough times, they'll now need to spend less to save money.
In the future, the countries in Europe and Central Asia need to do a lot to make their economies better. They need to improve how things are bought and sold, make things more productive, help people get better education, and come up with new ideas. They also need to make sure they're not hurting the environment too much. Because prices are high, this could be a good time to focus on cleaner energy sources.
Because prices went up and life costs more, many people are having a hard time. Things like food and energy are more expensive, and renting homes or paying for services costs more too. This means that a lot of people are struggling to make ends meet, and some even became poor because of this. Almost everyone in the region is worried about prices going up.
When we look at how prices went up for different people, we see that poorer families had to deal with much higher prices than richer ones. This was true in almost every country. Also, the average amount prices went up for each family was higher than what's usually shown in the news. This is important because it affects how we help poor people. We need to understand that the cost of living is going up more for them and make sure our help reaches them properly.
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