Economic growth edges higher for EBRD countries but tariff threat looms

By Libby George

LONDON (Reuters) -The European Bank for Reconstruction and Development lifted its 2025 growth forecast for the first time in more than a year but warned that the effects of tariffs and war will weigh on growth in 2026.

The report, which covers economies in emerging Europe, Central Asia, the Middle East and Africa, raised the 2025 growth outlook slightly to 3.1%, but noted a growing divergence as emerging European countries’ growth lagged expansion elsewhere.

The 2025 estimate excludes the development bank’s newest members – Iraq and six Sub-Saharan African countries, including Nigeria, Kenya and Ghana – but they are included elsewhere in the report for the first time.

The latest report, EBRD chief economist Beata Javorcik told Reuters, showed “a story of multiple pressu