A new World Bank report has provided information about the possibility of increasing production efficiency by 10 percent in the Europe and Central Asia region. This was reported by Zamin.uz.
The report states that this growth could lead to the creation of nearly 2 million new jobs. Experts analyzing the main factors for economic development emphasized that not only the increase in capital and labor force but also improving efficiency is of great importance.
The report notes that in the years following the global financial crisis, the slowdown in economic growth was often associated with low levels of efficiency. Additionally, the report mentioned problems such as slow implementation of reforms, accumulation of resources in inefficient state-owned enterprises, and insufficient utilization of development opportunities.
According to analysts, companies engaged in exports in the region are the most efficient, but their number is insufficient. It was noted that the trade turnover of Europe and Central Asia countries is on average 45 percent below potential, indicating that there are still significant opportunities for integration into the global economy and attracting foreign investments.
The World Bank recommended that countries in this region focus on key areas such as accelerating reforms, developing trade and investments, digitalization, improving efficiency, and training qualified personnel. These measures will not only help create new and quality jobs but also increase household incomes and strengthen the stability of economies.
According to Asad Alam, the World Bank’s regional director, the region is currently at a critical stage and improving efficiency should be a priority.
