Economic projections revised upward to 3.6% for 2026 and 3.7% for 2027
Some EBRD countries benefited from AI-related exports to the U.S. as trade rerouted from China
EBRD warns that ongoing trade turmoil and geopolitical conflicts could still derail future growth
📖 Full Retelling
The European Bank for Reconstruction and Development reported in London on Thursday, February 26, 2026, that U.S. President Donald Trump's trade tariffs have not significantly hindered economic growth in emerging countries, with the 40 nations covered by the development bank experiencing growth of 3.4%, exceeding expectations, as trade rerouted rather than diminished, particularly benefiting countries supplying AI-related products to replace Chinese exports. According to EBRD's chief economist Beata Javorcik, the economic picture appears 'more optimistic than in the autumn' due to several factors including slowing inflation and significant infrastructure investments, particularly across European nations. Interestingly, while many feared Trump's tariffs would severely impact global trade, the report indicates that exports from some EBRD countries to the United States actually increased, especially in the artificial intelligence sector, with countries like Hungary, the Czech Republic, and Poland benefiting by supplying servers, processors, and computing systems that filled the gap left by reduced Chinese exports. However, Javorcik cautioned that the full impact of the tariffs remains uncertain, as much of the tracked trade preceded the April 2025 'Liberation Day' tariffs, and recent legal challenges to Trump's tariff authority add another layer of complexity, while ongoing trade turmoil, combined with the war in Ukraine and increased defense spending, diverts policymakers' attention and resources from addressing long-term challenges like demographic shifts.
🏷️ Themes
Trade policy, Economic resilience, Global uncertainty
Country's economy that was traditionally small, but is currently expanding rapidly
An emerging market (EM, also an emerging country or an emerging economy) is a market that has some characteristics of a developed market, but does not fully meet its standards. This includes markets that may become developed markets in the future or were in the past. The term "frontier market" is ge...
In economics, economic growth is an increase in the quantity and quality of the economic goods and services that a society produces. It can be measured as the increase in the inflation-adjusted output of an economy in a given year or over a period of time.
The rate of growth is typically calculated ...
Financial institution which supports more than 30 countries
The European Bank for Reconstruction and Development, shortened to EBRD (French: Banque européenne pour la reconstruction et le développement or BERD), is an international financial institution founded in 1991 in Paris. As a multilateral developmental investment bank, the EBRD uses investment as a t...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Nasdaq ends more than 1% higher as Nvidia rises pre-earnings, tech extends rebound Gold prices head for fifth day of gains in six; JPMorgan sees more upside Nvidia set to report strong results and guidance, analysts say Selloff in this large IT stock offers a ’great buying opportunity into 2026’ (South Africa Philippines Nigeria) Trump tariff turmoil yet to dent emerging countries’ growth, EBRD says By Reuters Economy Published 02/26/2026, 01:09 AM Updated 02/26/2026, 01:12 AM Trump tariff turmoil yet to dent emerging countries’ growth, EBRD says 0 By Libby George and Karin Strohecker LONDON, Feb 26 - U.S. tariffs have rerouted trade, but not dented it as much as feared, allowing larger-than-expected economic growth in certain developing markets, the European Bank for Reconstruction and Development said on Thursday. Growth in the 40 countries covered by the development finance institution rose by a larger-than-forecast 3.4%, but the bank warned that continued trade turmoil could yet derail growth in some of the economies. "The picture is somewhat more optimistic than in the autumn...and we expect this year and next year to be even better than last year," the EBRD’s chief economist Beata Javorcik told Reuters. Slowing inflation and big spending on infrastructure projects - particularly in Europe - were helping, but the report also showed that the impacts of U.S. President Donald Trump’s trade tariffs were not as stark as expected. The bank now expects 3.6% growth this year and 3.7% in 2027 - both a 0.2 percentage point upward revision compared with its autumn projections. Exports from some EBRD countries to the United States even grew, particularly those related to the AI boom, as those countries replaced China’s exports. Hungary, the Czech Republic and Poland all export AI-related products such as servers, processors and computing systems that mean they could benefit from the shift. But Javorcik warned that t...
