The World Bank propagated that growth in South Asia is likely to be strong at 6.0 per cent in 2024, driven mainly by robust growth in Bharat.
As per 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 likely to reach 7.5 per cent in Financial Year 2023-2024 before returning to 6.6 per cent over the medium term, with activity in services and industry expected to remain robust.
The World Bank report stated continuous structural challenges threaten to undermine sustained growth, obstructing the region’s ability to generate 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 World Bank South Asia unit Vice President Martin Raiser.
“To make growth more resilient, countries need to adopt policies to boost private investment and strengthen employment growth,” he added.
Besides, the report projects a mild recovery in the Pakistan economy with growth indicated at 2.3 per cent in FY24-25, while in Sri Lanka output growth is expected to surge to 2.5 per cent in 2025, with recoveries in reserves, remittances, and tourism.
In Bangladesh, output is expected to rise by 5.7 per cent in FY24/25, with high inflation and restrictions on trade and foreign exchange constraining economic activity.
