NEW YORK: The World Bank has raised its growth forecast for South Asia to 6.4 percent in 2024 from an earlier estimate of 6 percent.
It cited the strength of local demand in India and swift recoveries in countries such as Pakistan and Sri Lanka.
“You have recoveries from crises in Sri Lanka and in Pakistan, you also have a tourism-led recovery in Nepal and Bhutan,” Martin Raiser, World Bank Vice President for South Asia, told media.
He added the upward revision placed South Asia as the fastest-growing emerging economy region.
Raiser went on to say there was “significant upside potential” to growth with greater integration of South Asian nations into the international economy.
The World Bank estimated Pakistan’s economy would grow by 2.8 percent in the current fiscal year, which began in July, an increase from the previous estimate of 2. 3 percent, aided by a recovery in manufacturing and easing monetary policy.
Sri Lanka, which was hit by the worst economic crisis in decades, saw the biggest upward revision, with growth expected to come in at 4.4 percent this year and 3.5 percent in 2025.
Nepal’s growth forecast was also raised to 5.1 percent from 4.6 percent for the 2024/25 fiscal year starting mid-July, and Bhutan’s to 7.2 percent from 5.7 percent.
But Bangladesh’s growth forecast was downgraded to 4.0 percent from 5.7 percent for the fiscal year 2024/25, showing a slowdown in garment exports amid recent political unrest.
The World Bank said the region must enhance women’s labour force participation currently the lowest at 32 percent.
“Bringing more women into the labour force could add significantly to the production potential,” said Raiser.
