The World Bank says South Asia, including India, will be the fastest-growing region in the world, with GDP growth projected to go up from 7 percent in 2015 to 7.4 percent in 2016.But for that to happen, says the World Bank’s half-yearly report released this month, there has to be ‘solid growth in services, domestic consumption, and a gradual rise of investments’.“Limited exposure to the financial turmoil and an improved external position has given most South Asian countries important policy space,” the global lender says in its South Asia Economic Focus.“Given India’s weight in the region, its performance greatly influences the projections for South Asia as a whole.
“While the region is now in a position of strength, structural constraints holding back export and investment growth do persist. To keep the momentum and accelerate job creation, governments should enact reforms easing infrastructure bottlenecks and paving the way to greater competitiveness,” World Bank Chief Economist for South Asia Martin Rama said in a statement.Fiscal space remains limited while financial sector vulnerabilities persist,” he says.As for Bangladesh, the report says the country has seen a spurt in domestic economic activity since April 2015 – after the end of the three-month long political violence since January.“GDP is expected to grow by 6.5 percent in 2015 and 2016, supported by healthy agricultural production along with a recovery in services and domestic demand.
