The World Bank has revised its South Asia growth forecast for 2024 upward to 6.4%, up from the earlier estimate of 6.0%, driven by strong domestic demand in India and quicker-than-expected recoveries in countries like Sri Lanka and Pakistan. India’s economic growth forecast for the fiscal year ending in March 2025 was raised to 7%, up from 6.6%, due to a rebound in agricultural output and rising private consumption.
This revision reinforces South Asia’s position as the fastest-growing emerging economy region monitored by the World Bank, which projects a robust 6.2% annual growth for the region over the next two years.
Countries like Sri Lanka have seen the biggest improvements, with growth projected at 4.4% for 2024, while Pakistan is expected to grow by 2.8%, thanks to easing monetary policies and a recovery in manufacturing. Meanwhile, Nepal and Bhutan also saw upward revisions, while Bangladesh’s growth was downgraded to 4.0%, reflecting slower garment exports amid recent unrest.
The World Bank also emphasized the importance of increasing women’s labor force participation, which stands at just 32% in the region, the lowest globally. Bringing more women into the workforce could significantly boost long-term economic output, potentially raising production by as much as 50%.
