## Unleashing Potential: Structural Reforms for Boosting Long-Term Growth

_Selected Issues Papers, June 22, 2026_

## Source details

**Canonical URL:** [Unleashing Potential: Structural Reforms for Boosting Long-Term Growth](https://www.imf.org/en/publications/selected-issues-papers/issues/2026/06/22/unleashing-potential-structural-reforms-for-boosting-long-term-growth-577127)

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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

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### 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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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/06/22/unleashing-potential-structural-reforms-for-boosting-long-term-growth-577127_