A 10% rise in productivity could create almost 2 mln jobs across Europe and Central Asia, according to a new World Bank report. Experts emphasise that productivity, rather than simply expanding capital or labour, should be the main driver of economic growth.
The report highlights that sluggish economic growth following the global financial crisis was largely due to falling productivity. Reforms progressed slowly, many resources remained tied up in inefficient state-owned enterprises and development opportunities were underused. Export-focused firms, although few, remain the most productive in the region. At the same time, trade volumes are on average 45% below potential, indicating significant room for integration into the global economy and attracting foreign investment.
The World Bank advises countries in the region to accelerate reforms and focus on five key areas: trade, investment, digitalisation, efficiency and skills development. These measures are expected to create higher-quality jobs, increase incomes and strengthen economic resilience.
«The region is at a critical stage. Raising productivity must be a top priority,» said Asad Alam, the World Bank’s regional director.
