COVID-19

This paper provides new cross-country evidence that greater investment in agricultural R&D significantly mitigates the adverse effects of climate variability on crop yields in sub-Saharan Africa. Despite this critical role, only a handful of countries have invested at levels sufficient to reach the thresholds where R&D delivers effective risk adaptation. Our analysis indicates that closing this gap would require an additional US$1–3 billion in annual agricultural research investment across the region.

Armenia’s economic performance has been strong despite a series of shocks amid an uncertain global environment. Thanks to the authorities’ agile policies and unforeseen inflows of labor and capital, growth has exceeded historical trends and inflation has been contained, while fiscal and external balances are largely in check. As the exceptional drivers of growth are gradually tapering off, the challenge is to permanently raise Armenia’s economic potential through sound policies and reforms that tackle lingering structural and institutional weaknesses. The initialing of a peace agreement with Azerbaijan in August is a historic breakthrough, which, if ratified by the two countries, would improve regional cooperation and stability.

The paper discusses Bulgaria’s public investment needs and its efficiency and assesses prospects for accelerating economic growth and income convergence through scaling up quality public investment. Utilizing substantial EU grants to fund public investment offers Bulgaria a unique opportunity to finance important infrastructure projects without relying on debt. However, slow absorption of these grant funds and inefficiencies in public investment management remain significant challenges. The analysis highlights the critical role of efficient public investment in boosting productivity and fostering sustainable growth. Using the DIGNAR model calibrated to Bulgaria’s economy, simulations suggest that full EU funds absorption and improved public investment efficiency could boost GDP by 2.3 percent in 2030. The findings underscore the importance of steadfast reforms to accelerate EU fund absorption and improve efficiency, including through enhanced investment planning and procurement processes, to boost growth.