Africa
The April 2025 edition of Africa¡¯s Pulse reports that economic growth in Sub-Saharan Africa is showing some resilience, despite uncertainty in the global economy and restricted fiscal space. Regional growth is expected to reach 3.5 percent in 2025 and further accelerate to 4.3 percent in 2026-2027, mainly due to increased private consumption and investments as inflation cools down and currencies stabilize. However, countries rich in resources and those facing fragility, conflict, and violence are growing more slowly than the rest of the region, and the region is struggling to reduce poverty and create enough good jobs for its young population. Escaping the cycle of poor growth outcomes and political dissatisfaction will require that governments prioritize the delivery of practical solutions for their citizens. This implies focusing on areas where governments directly affect people¡¯s lives¡ªproviding quality public services and fairly-regulated market competition.
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East Asia and Pacific
East Asia and Pacific (EAP) outpaced most regions in economic growth in 2024. To sustain this momentum and generate jobs, EAP countries must navigate global uncertainty and tackle long-term challenges tied to shifting global integration, climate change, and demographic trends. In its?,?the ÐÓ°ÉÂÛ̳ projects that growth in EAP will slow down to 4.0 percent in 2025, compared to 5.0 percent in 2024.?Prospects for higher or lower growth depend partly on broader growth prospects, but also on how country policies respond to uncertainty in the global environment.
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Europe and Central Asia
Growth in the developing economies of Europe and Central Asia is expected to slow significantly to 2.5 percent on average in 2025-26 in the face of profound global uncertainty. To boost competitiveness and create jobs, the region must improve its business environment and foster its private sector. That will require focusing policy interventions on promoting young, dynamic firms over state-owned enterprises; improving access to long-term financing for entrepreneurs; investing in upskilling and education to train the workforce necessary to remain competitive in the global economy; and ensuring fair access to markets and technologies. Improving business dynamism and unleashing private sector-led job creation is crucial for middle-income economies across Europe and Central Asia to make progress on growing to high-income status and building economies resilient to global economic shocks.
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