The World Bank has said that growth in South Asia is expected to be strong at 6.0 % in 2024, driven mainly by robust growth in Bharat.
According to Jobs for Resilience, the latest South Asia Development Update released on Tuesday, in Bharat, which accounts for the bulk of the region’s economy, output growth is expected to reach 7.5 % in FY23-24 before returning to 6.6 % over the medium term, with activity in services and industry expected to remain robust.
The World Bank report says persistent structural challenges threaten to undermine sustained growth, hindering the region’s ability to create jobs and respond to climate shocks.
“South Asia’s growth prospects remain bright in the short run, but fragile fiscal positions and increasing climate shocks are dark clouds on the horizon,” said Martin Raiser, World Bank Vice President for South Asia.
“To make growth more resilient, countries need to adopt policies to boost private investment and strengthen employment growth,” he added.
The report also projects a mild recovery in the Pakistan economy with growth projected at 2.3 % in FY24-25, while in Sri Lanka output growth is expected to increase to 2.5 % in 2025, with recoveries in reserves, remittances, and tourism.
In Bangladesh, output is expected to rise by 5.7 % in FY24/25, with high inflation and restrictions on trade and foreign exchange constraining economic activity.
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