Key facts
- EBRD President Odile Renaud-Basso advised targeted and temporary government support for emerging economies.
- The advice comes amid increased debt burdens and tighter fiscal space in affected regions.
- The Middle East conflict and the war in Ukraine are cited as major crises.
- Energy price spikes and potential fertilizer shortages risk further inflation.
- The EBRD will cut its growth outlook and raise its inflation forecast.
- The EBRD plans to deploy €5 billion into countries hit by the fallout from the Iran war.
The European Bank for Reconstruction and Development (EBRD) operates in emerging economies in Europe, Central Asia, the Middle East, and Africa. These regions have been significantly impacted by a series of global crises, starting with the COVID-19 pandemic and escalating with Russia's invasion of Ukraine. The ongoing conflict in the Middle East adds further pressure, threatening to increase energy and food prices and exacerbate existing economic vulnerabilities. The EBRD's guidance reflects concerns about fiscal sustainability and the need for prudent economic management in these challenging times.