Translation. Region: Russian Federal
Source: United Nations – United Nations –
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October 7, 2025 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.
In 2025, the region's economic growth is likely to be 2.4 percent, down from 3.7 percent in 2024. The main reason is the slowdown in Russia, which accounts for approximately 40 percent of the region's output. Excluding Russia, growth will remain stable at approximately 3.3 percent this year and next.
According to Antonella Bassani, World Bank Vice President for Europe and Central Asia, countries need to implement reforms to boost productivity, create more jobs, and adapt to population changes. To do this, it's important to develop private enterprise, improve education, and strengthen ties with other countries. It's also essential to attract more private investment and transform low-wage positions into full-time, sustainable jobs.
The report emphasizes that investments in infrastructure, education and training, and support for entrepreneurship are the foundation for accelerating economic growth. To create more and better jobs, countries need to invest in human development and improving working conditions. Unleashing the underutilized potential of women and youth is particularly important. This will help offset the expected decline in the labor force—projected to fall by 17 million in the coming decades, particularly in Eastern and Central Europe and the Western Balkans.
At the same time, the number of people of working age will grow in Central Asia and Turkey, creating other challenges—for example, the need to provide employment for everyone. However, development is hampered by issues such as weak competition, small businesses that rarely grow, a lack of funding, outdated education systems, and the large number of state-owned companies that hinder business development.
Ivaylo Izvorski, the World Bank's Chief Economist for the region, believes that each country can find its own path by leveraging its strengths—its people, infrastructure, and natural resources. Focusing on job creation and skills development will help countries achieve sustainable economic growth.
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.