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Inflation in the EBRD's region, which covers some 40 economies stretching from Kazakhstan to Hungary and Tunisia, reached an average of 16.5% in December after a 17.5% peak a month earlier, though "disinflation is likely to be more gradual than markets currently expect," according to the bank's report.

EBRD, which operates across roughly 40 economies in the world, hopes to increase investments in the Middle East and Africa in 2023, particularly in Egypt.

The bank had around $1 billion in its Russia and Belarus-focused portfolio before the war in Ukraine, which is now "fully provisioned", Renaud-Basso said, adding that in comparison, broader market conditions and non-performing loans had a limited impact on EBRD's holdings.

"We still haven't seen the fallout from the pandemic and the war in terms of bankruptcies. Actually, bankruptcies in the new EU member states are down," Beata Javorcik, the EBRD's chief economist, told Reuters.

"Despite all expectations that we had ... that this war on Ukraine will have significant negative implications on the Georgian economy, so far we don't see materialization of these risks," said Dimitar Bogov, the EBRD's lead economist for Eastern Europe and the Caucasus.