В МИРЕ НОВОСТЕЙ: Europe and Central Asia Economic Update

среда, 6 октября 2021 г.

Europe and Central Asia Economic Update

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	October 6, 2021

Europe and Central Asia Economic Update Although global economic activity is recovering and output in Europe and Central Asia is expected to grow in 2021, containing COVID-19 remains a challenge in the region. Enterprise survey data for the emerging and developing countries in the region show that COVID-19 had a profound and heterogeneous impact on firms.

A surprisingly strong rebound in the first half of this year boosted economic activity in emerging and developing countries in the Europe and Central Asia region, with the regional economy now projected to expand by a better-than-expected 5.5 percent in 2021, says the latest edition of the World Bank’s Economic Update for the region.

In 2022, regional growth is forecast to moderate to 3.4 percent, as external demand and commodity prices further stabilize, global growth plateaus, and pandemic stimulus is withdrawn. The outlook remains highly uncertain given the continuation of the pandemic, especially in the context of unequal vaccine access and hesitancy.

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Competition and Firm Recovery
Post-COVID-19

Europe and Central Asia Economic Update, Fall 2021

Economies around the world have been hit hard by the COVID-19 pandemic. At the onset of the pandemic, the rapid spread of the disease and movement restrictions and lockdowns to contain the virus led to sudden supply and demand shocks, which manifested themselves in declines in output and productivity. Widespread uncertainty among businesses and concerns about the risks of increasing financial sector distress limiting firms’ access to credit have compounded the supply and demand shocks.

How did firms in Europe and Central Asia (ECA) fare? This edition of the ECA Economic Update builds on the World Bank’s ongoing work with the Enterprise Surveys COVID-19 Follow-Up Surveys and Business Pulse Surveys to assess the impact of COVID-19 on firms in the region, with a focus on the role of competition during the crisis and recovery because competition is key to sustainable, long-term economic growth.

The pandemic has heightened concerns about limited competition and its potential consequences for economic growth. If smaller firms find it more difficult to adapt new technologies or business models; are less likely to receive government support; and, as a result, are more likely to exit, concentration and the dominance of large firms may increase, potentially further limiting competition, just when it is most needed to promote recovery.