In the first half of 2022, real GDP declined by 4.2 percent y/y as exports continued to fall and domestic demand weakened. A contraction of economic activity and higher poverty are projected in 2023 as businesses continue to face supply-side bottlenecks, while the effects of policies to support the economy and promote import substitution are yet to materialize, according to the World Bank's latest Regional Economic Update for Europe and Central Asia (Oct 2022).