Europe and Central Asia Overview

Overview

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Economy
Strategy
Results
Partners

Economic Developments
After turbulent times, growth is stabilizing in Europe and Central Asia at around 1.8 percent. In the European Union a sustained, albeit modest, recovery has started to reduce unemployment and has pushed inflation into positive territory. In Eastern Europe the stabilization of oil prices at around $50 per barrel has provided some breathing room for governments that have begun adjusting policies to the lower level of oil prices.
Even if the economic headwinds abate, major challenges remain. The start of Brexit has thrown the European Union into unchartered territory. In the eastern part of the region low oil prices have threatened the financial system in virtually all countries, from Belarus to Tajikistan and many countries in between.
Equally important challenges have arisen from structural changes in the global economy. New specialization patterns are emerging. New technologies are changing production methods and are upending traditional labor market relations. As most economies in the Europe and Central Asia region will have to facilitate a shift from non-tradable production to internationally competitive tradable production, they will have to navigate these new realities.
Last updated April 2017
The World Bank’s regional strategy for Europe and Central Asia seeks to eliminate poverty and boost shared prosperity by supporting clients in three overall areas of focus: Sustainable and Inclusive Growth, Human Capital, and Resilience:
Sustainable and Inclusive Growth: Improving government efficiency and service delivery; creating markets, financial sector stability and a vibrant private sector; and energy and regional connectivity for growth.
Human Capital: Building skills and job opportunities for the future; meeting the challenge of protecting vulnerable groups; and responding to aging and health challenges.
Resilience: Prioritizing climate action and building resilience to natural disasters; rethinking the social contract; and facing the challenge of displaced persons.
World Bank Assistance and Support
The Bank approved $7.3 billion in lending to the region for 42 projects in fiscal year 2016, including $7.0 billion in IBRD loans and $233 million in IDA commitments. The Bank also signed 34 Reimbursable Advisory Services agreements with 9 countries for a total of $34.1 million. These agreements provide technical advice on such issues as the reform of education systems, public sector governance and institutional capacity building, and the planning and management of infrastructure investments.
Results
We work with client countries to fight poverty and boost shared prosperity by helping them build more responsible institutions, increase private investment, improve service delivery, upgrade infrastructure, protect the environment, support human development, and empower marginalized groups.
In order to deliver integrated solutions that help countries address their development challenges, we regularly look at where we are achieving results and making an impact. By measuring and monitoring those results, we can then improve the way we support our clients and achieve better development outcomes.
Find out more about our results in Europe and Central Asia.
Reimbursable Advisory Services (RAS)
Middle-income countries interested in highly specific knowledge services that exceed what the Bank can finance from its own resources are increasingly accessing Bank technical expertise using Reimbursable Advisory Services (RAS).
Find out more about Reimbursable Advisory Services.
Analytical Work Highlights
In addition to its financial products and RASs, the Bank produces important research about critical issues in the region. Through its analytical work, the World Bank aims to bring global knowledge and adapt it to the needs of ECA countries.
Find out more about our publications and research on Europe and Central Asia.
European Union, European Commission, and other institutions
The World Bank’s ECA region has a strategic partnership with the European Union (EU), and is working with the European Commission (EC) and European international financial institutions (IFIs) to improve the capacity of ECA’s EU-member clients to absorb EU funds.
The Bank works closely together with EU institutions, European IFIs (European Investment Bank [EIB] and the European Bank for Reconstruction and Development [EBRD]), and the International Monetary Fund (IMF) as part of the second Vienna Initiative, which aims to improve banking systems and coordination among banking regulators in EU and non-EU countries.
The World Bank Group, the EBRD, and the EIB Group came together in November 2012 for a new Joint International Financial Institution (IFI) Action Plan. One of the most important priorities under the Action Plan was to ensure continued financing for SMEs that are key drivers of innovation and job creation in the region.
ECA works on Roma inclusion across the region in collaboration with various partners, including the European Commission, the Roma Education Fund, and a variety of national Roma agencies.
The Bank is also working with the EurAsian Economic Community’s (EURASEC) Anti-Crisis Fund and with the Eurasian Development Bank to provide parallel financing for low-income ECA countries.