Regional GDP growth is likely to be 2.4 percent this year. The World Bank predicts a decline in GDP growth in Europe and Central Asia Economic Development
Economic growth in Europe and Central Asia has slowed, but the region remains resilient despite global and domestic challenges, according to a new World Bank report.
The region’s economy is likely to grow 2.4 percent in 2025, down from 2024’s 3.7 percent. The main reason is slowing growth in Russia, which accounts for about 40 percent of the region’s output. Excluding Russia, growth will remain stable at about 3.3 percent this year and next.
Countries need to undertake reforms to boost productivity, create more jobs and adapt to changes in economic conditions, according to Antonella Bassani, World Bank vice president for Europe and Central Asia. population size. To achieve this, it is important to develop private business, improve education and strengthen ties with other countries. There is also a need to attract more private investment and transform low-wage positions into full-time jobs with a future.
The report emphasizes that investment in infrastructure, education and training, and support for entrepreneurship are key to accelerating economic growth. To create more and better jobs, countries need to invest in developing people and improving working conditions. It is especially important to unlock the potential of women and youth, which is still underutilized. This will help offset the expected decline in the number of working-age people – projected to be 17 million fewer in the coming decades, especially in Eastern and Central Europe and the Western Balkans.
At the same time, in Central Asia and Turkey the number of working-age people will grow, creating other challenges – such as the need to provide for everyone work. However, development is hampered by problems such as weak competition, small businesses that rarely grow, lack of financing, outdated education systems and a large number of state-owned companies that hinder business development. people, infrastructure and natural resources. If countries focus on job creation and skills development, it will help achieve sustainable economic growth.