The Eastern partner (EaP) region – made up of Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and Ukraine – is home to 75 million people, and had a combined nominal GDP of USD 315.7 billion in 2014. The region benefits from a vast agricultural land area and considerable energy and natural resources, as well as a comparatively well-educated workforce. Georgia, Moldova and Ukraine have recently signed bilateral Association Agreements with the EU, including Deep and Comprehensive Free Trade Areas (DCFTAs), creating new opportunities for greater economic integration and trade. The region’s location close to the world’s largest single market (the EU), to Russia and to important economies in the Middle East and Asia also gives it a pivotal role in transport and energy networks.

Although the pace of structural reform varies from country to country, the region as a whole is going through a process of economic transformation, moving progressively away from a growth model based on large enterprises specialised on intermediary outputs and commodity transformation, towards a more diversified and open economic structure. The pace of structural transformation varies considerably within the region.