In Central Asia, growth is expected to slow to an average of 4.9% in 2026-2027, mainly due to the stabilization of oil production in Kazakhstan.
The World Bank estimates that the Central European economy will grow by about 2.4% in 2026, followed by a decline to 2.3% in 2027. In the Western Balkans, the growth will be about 3.1%, which will be supported by infrastructure investments and exports of services.
The report also notes that global economic growth is being held back by rising energy prices, market uncertainty and declining investment activity.
Antonella Bassani, Vice President of the World Bank for the ECA region, stressed that the countries of the region need to strengthen targeted support for vulnerable segments of the population and implement reforms aimed at increasing the sustainability of the economy and creating jobs.
A separate section of the report is devoted to industrial policy. Experts note that it is important for the countries of the region to focus on supporting innovation, entrepreneurship and competitiveness, rather than preserving outdated economic structures.
The World Bank's Chief Economist for the ECA region, Ivaylo Izvorski, noted that effective industrial policy should be temporary, targeted and aimed at supporting the private sector and innovative industries.
The report emphasizes that government support measures should promote the development of new companies and technologies, rather than perpetuate existing market imbalances.
