- Overview
- Speakers
- Report
The countries of Europe and Central Asia are being tested again this year, with a protracted and more intense conflict in the Middle East representing a key downside risk.
In addition, escalating regional geopolitical tensions, increased trade barriers, and a slowdown in productivity growth have led some policymakers in the region to supplement broad structural reforms with industrial policies. Certain industrial policies—such as targeted public inputs, including special economic zones or skills development programs—can help address well-identified market failures. However, industrial policies should be used sparingly and only temporarily, serving to complement the institutional reforms necessary for sustained productivity and job creation.