The EBRD said on Thursday war-related shocks are slowing growth across many emerging markets. Its regional outlook cited higher energy prices, rising borrowing costs, a European drought and the continued closure of the Strait of Hormuz, and now expects GDP across 40 covered economies to expand 2.5% this year, 0.6pp below its June forecast and the second consecutive downgrade. Chief economist Beata Javorcik warned multiple pressure points—from diesel and wheat costs to borrowing rates—are accumul

The EBRD said on Thursday war-related shocks are slowing growth across many emerging markets. Its regional outlook cited higher energy prices, rising borrowing costs, a European drought and the continued closure of the Strait of Hormuz, and now expects GDP across 40 covered economies to expand 2.5% this year, 0.6pp below its June forecast and the second consecutive downgrade. Chief economist Beata Javorcik warned multiple pressure points—from diesel and wheat costs to borrowing rates—are accumulating and pose substantial downside risk. Iraq and Lebanon suffered the biggest cuts: Iraq is now forecast to contract about 12% this year as Hormuz closures curb oil exports; Lebanon is seen shrinking roughly 5% amid the Israel conflict. The EBRD also trimmed forecasts for Ukraine, citing intensified Russian attacks, and for Turkey as persistent inflation tightens financing conditions.