The World Bank reports that economic growth in Europe and Central Asia remains stable despite the global economic slowdown
In 2023, the economic growth in Europe and Central Asia saw a significant surge to 2.7%, a notable increase from the 1.2% recorded in 2022. This rebound is attributed to the expansion of domestic demand, stable market conditions in the labor market, and the resurgence of growth in the Russian Federation and Ukraine, as reported in the World Bank’s Global Economic Prospects report for January.
The report anticipates a slowdown in economic activity in Europe and Central Asia to 2.4% this year, followed by a projected increase to 2.7% in 2025. Key drivers for this growth include private consumption supported by decreased inflationary pressures and export improvement, attributed to the gradual recovery of the eurozone economy.
Central Asia is expected to sustain relatively stable growth at approximately 4.8% annually from 2024 to 2025, exhibiting the highest growth among subregions. This resilience is fueled by sustained high commodity prices, robust consumer spending amid lower inflation rates, and continual export growth driven by expanding oil production capacity in Kazakhstan.
The regional economy faces vulnerability in the event of a slower-than-expected recovery in the euro area, a critical trading partner for the region. Such a scenario, coupled with geopolitical risks, could negatively impact regional economic activities.(Source:astanatimes)
On a global scale, growth is projected to decline for the third consecutive year, dropping from 2.6% in 2023 to 2.4% in 2024, marking the slowest half-decade of GDP growth in three decades.
Indermit Gill, the World Bank Group’s chief economist and senior vice president, highlighted that weak near-term growth might trap many developing countries—especially the poorest—in high debt levels and precarious access to food for a significant portion of the population. This could hinder progress on global priorities. However, Gill emphasized the potential for change, noting that the report provides a roadmap for transformation if governments act promptly to expedite investment and fortify fiscal policy frameworks.
