Team Blitz India
India, which accounts for most of the regional economy, is set to remain robust with 6.3% growth in the 2023-24 fiscal year, while others like Maldives and Nepal are also expected to grow, thanks to a rebound in tourism. But things are bleaker in other countries.
According to the World Bank, Bangladesh’s growth may slow to 5.6%, while projections for Pakistan’s growth —only 1.7% — are below the rate of its population growth, said.
Sri Lanka, whose economy collapsed last year, is recovering slowly from a severe recession, but the IMF last week held off from releasing a second tranche of a funding package after concluding that the country had failed to make enough progress in economic reforms.
South Asia is expected to grow by 5.8% this year, making it the fastest-growing region in the world even as the pace remains below pre-pandemic levels,
The latest South Asia Development Update from the World Bank projected growth in the region to slow slightly to 5.6% in 2024 and 2025, as post-pandemic rebounds fade and reduced global demand weighs on economic activity.
At almost 6% this year, the region is growing faster than all other emerging markets, said Franziska Ohnsorge, the organisation’s chief economist for South Asia.
“While high inflation and interest rates have bogged down many emerging markets, South Asia seems to be forging ahead,” the World Bank noted in its report.
Despite the progress, the region still has a long way to go, the report said. Per capita incomes in South Asia are around $2,000 — one-fifth of the level in East Asia and the Pacific region.