WASHINGTON: The World Bank on Thursday lifted its 2023 economic growth forecast for eastern Europe and central Asia to 1.4% from an earlier 0.1% prediction, citing improved outlooks for both Russia and Ukraine despite their ongoing war.

The regional forecast, released just days before the World Bank and International Monetary Fund hold their annual spring meetings, has Ukraine’s economy growing by 0.5% this year following a staggering contraction of 29.2% in 2022, the year Russia launched its invasion.

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“While the economic toll suffered by Ukraine as a result of the invasion is enormous, the reopening of Ukraine’s Black Sea ports and resumption of grain trade, as well as substantial donor support, are helping support economic activity this year,” the World Bank said in a statement.

Russia’s economy shrank 2.1% last year, considerably less than the 3.5% contraction the World Bank forecast in January.

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For 2023, the World Bank forecast Russia’s economy to contract by 0.2%, compared to its previous forecast of a 3.3% contraction.

The World Bank’s regional grouping includes Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kazakhstan, Kosovo, Kyrgyzstan, Moldova, Montenegro, North Macedonia, Poland, Romania, Russia, Serbia, Tajikistan, Turkey, Turkmenistan, Ukraine and Uzbekistan.