Unleashing Potential: Structural Reforms for Boosting Long-Term Growth
Selected Issues Papers, June 22, 2026
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Bibliographic details
- Authors: Adina Popescu, Chan Kim, Simona Kovachevska Stefanova, Ming Ma, Rimtautas Bartkus
- Published: June 22, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229049016.018
Estimates of potential growth and output gap
- Potential growth is estimated at 2.6–2.9 percent in 2025 using univariate filters and semi-structural models estimated with a Kalman filter.
- Results point to a small positive output gap.
Benchmarking: gaps versus EU and U.S. frontiers
- Benchmarking highlights sizable gaps in:
- labor market outcomes
- the business environment
- governance
Simulation results: potential GDP gains from closing gaps
- Simulations suggest that closing half of the gap relative to CESEE peers could raise GDP by about 14 percent over five years.
Reform priorities and implementation considerations
- The paper discusses reform priorities to support faster income convergence, focusing on:
- labor market reforms to improve outcomes
- measures to improve the business environment
- governance reforms to close institutional gaps
- Implementation considerations are discussed to facilitate effective adoption of structural reforms.
Publication and metadata
- Authors: Adina Popescu, Chan Kim, Simona Kovachevska Stefanova, Ming Ma, Rimtautas Bartkus
- Publication date: June 22, 2026
- Pages: 29
- Series: Selected Issues Paper No. 2026/048
- DOI: https://doi.org/10.5089/9798229049016.018
- ISBN: 9798229049016
- ISSN: 2958-7875
Source: "Unleashing Potential: Structural Reforms for Boosting Long-Term Growth", Selected Issues Papers (2026).
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