A 10 percent increase in productivity could create around 2 million new jobs in Central Asia and support faster GDP growth. The World Bank’s report «Tides of Change: Igniting Productivity Growth in Europe and Central Asia» says.
Experts note that simply increasing capital and labor does not deliver the desired results without improvements in resource efficiency.
The slowdown in economic growth across the region after the global financial crisis is almost entirely linked to declining productivity growth. The World Bank estimates that if productivity in Europe and Central Asia had continued to grow at pre-crisis rates after 2008, the region’s aggregate GDP would now be roughly 62 percent higher.
According to the report, the most productive companies are exporters, which—although representing a small share of total enterprises—account for a disproportionately large share of employment, investment, and value added.
«The region is at a critical juncture. By reinvigorating reform momentum and putting productivity growth at the forefront, countries can create more and better-quality jobs, raise living standards, and build a more sustainable future. The time to act is now,» Asad Alam, World Bank Regional Director for Europe and Central Asia, said.
