Europe and Central Asia Overview

Overview

«

»

Economy
Strategy
Results
Partners

GDP (current US$)

Economic Developments
Growth in Europe and Central Asia has been stronger than at any time since the global financial crisis. In 2017, GDP rose 2.7 percent and annual private consumption rose 2.5 percent.
Growth is forecast to moderate to 2.3 percent in 2018. However, increased capacity utilization, unemployment rates close to their 2007 levels, and average inflation now exceeding 2 percent are all signals that regional growth is likely to slow further.
During the economic upswing, many countries in the region increased their exports and reduced fiscal deficits, providing a cushion if cyclical headwinds materialize. Going forward, however, the region may face additional challenges navigating the global tightening of financial conditions and the rising tendencies toward protectionism.
Last updated on 27 September, 2018
The World Bank’s regional strategy seeks to support clients through investments in three key areas:
Sustainable and Inclusive Growth – Supporting client countries in building solid foundations for macroeconomic and financial stability, improving governance and institutions, and creating an enabling environment for private sector–led growth.
Human Capital – Prioritizing and investing in the systems that help ensure people are healthy, educated, and connected is essential for economic growth. This includes investing in safety nets to protect households during times of adversity, improving labor productivity and labor force participation to achieve higher incomes, and fostering inclusion and engaged citizenry for shared prosperity.
Resilience – Building resilience to climate change and natural disasters with investments across the region in three areas: low-carbon energy transition, sustainable land-use management, and climate resilience.
World Bank Assistance and Support
The World Bank approved $4.6 billion in lending to the region for 37 projects in fiscal year 2018, including $3.6 billion in IBRD loans and $1 billion in IDA commitments. The Bank also signed 35 Reimbursable Advisory Services agreements with 11 countries for a total of $74.9 million. These agreements provided technical advice on issues such as public finance and fiscal reforms, urban planning and development, and strengthening education and skills for employment.
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.