A slowdown or reversal of ongoing structural reforms remains in Armenia, Azerbaijan, Belarus, Ukraine and Turkey

Mounting tension around Syria and Ukraine may trigger new sanctions and undermine confidence in the region, the World Bank said in a report released on Tuesday.

The World Bank’s January 2019 World Economic Outlook is titled "Global Economic Prospects. Darkening Skies."

"Increases in policy uncertainty could undermine confidence in the region and impact growth. A slowdown or reversal of ongoing structural reforms remains a risk in many countries in the region, especially in Armenia, Azerbaijan, Belarus, Ukraine and Turkey. Tension concerning Syria or Ukraine could trigger new sanctions," the World Bank wrote about the risks for the development of economies in Europe and Central Asia.

"The most important downside risk is the possibility that the recent financial stress in Turkey worsens and triggers widespread bank failures," according to the report.