Business Forum • 24 April, 2025 at 9:16 AM
The World Bank projects that economic growth in the Europe and Central Asia region will decelerate in the coming years, while Romania will stay on a growth path.
According to the World Bank's latest Economic Update, regional growth is expected to slow to 2.5% in 2025-26, influenced by weaker external demand and a slowdown in Russia.
In 2024, the region experienced stable growth of 3.6%, driven by private consumption, wage increases, remittances, and consumer borrowing, which offset the impact of weaker demand from the EU.
However, rising prices for food and services have contributed to increased inflation, climbing to 5% by February 2025. This inflationary pressure has led several central banks to raise policy rates or delay easing measures.
“While countries of the Europe and Central Asia region were able to maintain steady growth last year, global uncertainty, geoeconomic fragmentation and weak expansion among key trading partners are making it more challenging to sustain this growth,” says Antonella Bassani, World Bank Vice President for Europe and Central Asia
In Romania, growth is projected to reach 1.3% in 2025 and 1.9% in 2026. This indicates a gradual acceleration in the country's economic expansion over the next two years, aligning with the broader regional trend.
At the same time, the World Bank estimates that Romania grew by 0.9% of GDP in 2024.