cover image: Europe and Central Asia Economic Update, April 2024: Unleashing the Power of the Private Sector

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Europe and Central Asia Economic Update, April 2024: Unleashing the Power of the Private Sector

11 Apr 2024

Economic activity in the Europe and Central Asia (ECA) region is expected to remain resilient but slow this year as a weaker global economy, slowdown in China, and lower commodity prices weigh on the region’s growth outlook. Regional growth is likely to drop to 2.8 percent in 2024, following substantial strengthening to 3.3 percent last year because of a shift from contraction to expansion in the Russian Federation and war-hit Ukraine, and a more robust recovery in Central Asia. Regional output growth is projected to moderate further to 2.6 percent in 2025. The outlook faces multiple headwinds. A slower-than-expected recovery in key trading partners, restrictive monetary policies, and exacerbation of geopolitical developments could further dampen growth across the region. Weak productivity growth in ECA in the recent decade has resulted in a sharp slowdown in income convergence with advanced economies. Fundamental drivers of productivity growth, including progress in advancing institutional and market reforms, technology adoption, and innovation, are key for enabling private sector–led growth. Boosting business dynamism in ECA will require addressing several challenges, including upgrading the competitive environment, reducing state involvement in the economy, dramatically boosting the quality of education, and strengthening the availability of finance. While meeting these challenges will look different across countries, addressing them is an essential condition to achieve stronger economic growth and overcome the middle-income trap.
access to finance europe and central asia economic growth human capital productivity private sector development poverty reduction state-owned enterprises structural reforms firms macroeconomics and economic growth business dynamism

Authors

World Bank

Citation
“ World Bank . 2024 . Europe and Central Asia Economic Update, April 2024: Unleashing the Power of the Private Sector . © Washington, DC: World Bank . http://hdl.handle.net/10986/41214 License: CC BY 3.0 IGO . ”
Collection(s)
Europe and Central Asia Economic Update Albanian PDFs Available Armenian PDFs Available Macedonian PDFs Available Serbian PDFs Available Turkish PDFs Available
DOI
https://doi.org/10.1596/41214
ISBN
978-1-4648-2108-0
Published in
United States of America
Rights
CC BY 3.0 IGO
Rights Holder
World Bank
Rights URI
http://creativecommons.org/licenses/by/3.0/igo
UNIT
Europe and Central Asia Office of the Chief Economist
URI
https://hdl.handle.net/10986/41214

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