"Activity in the Euro Area, Russia’s largest trading partner, has further decelerated, with the weakness spreading beyond the industrial sector. Activity in the Euro Area continues to surprise on the downside, with the industrial sector remaining in contraction and the manufacturing PMI [Purchasing Managers’ Index] hovering near its seven-year low in October. Germany continues to be the epicenter of the area-wide manufacturing recession, as industrial production remains in contraction and economic sentiment deteriorates," the report said.
The report indicated that economic recession might have already spread to other sectors of the economy.
"Indicators suggest that the weakness may have begun to spread to the wider economy, with the services PMI continuing to fall in October and consumer expectations of the general economic situation remaining at a nearly six-year low," the report added.
The World Bank noted that the continued uncertainty over the United Kingdom's departure from the European Union also had negative impact on trade and investment in the region.