Increasing production efficiency by 10% in the Europe and Central Asia region could potentially create nearly 2 million new jobs, according to a new report by the World Bank.
Experts emphasize that the key factor in economic development should not only be the increase in capital and labor force but also a focus on boosting productivity. The report notes that the slowdown in economic growth following the global financial crisis is largely linked to a decline in productivity rates.
Reforms have been implemented slowly, many resources remain tied up in inefficient state enterprises, and development opportunities have not been fully utilized. Analysts highlight that the most efficient companies in the region are those engaged in exports, but their number remains insufficient.
Meanwhile, the trade turnover of Europe and Central Asia countries is, on average, 45% below its potential, indicating significant opportunities for deeper integration into the global economy and attracting foreign investments. The World Bank recommends that countries in the region accelerate reforms, focusing on five key areas: trade, investment, digitalization, enhancing productivity, and developing skills.
These measures would not only help create quality jobs and improve household incomes but also strengthen the resilience of economies.
"The region is at a critical juncture. Increasing productivity must be a priority," said Asad Alam, the World Bank’s Regional Director.
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