The World Bank Released the South Asia Regional Economic Update

Thursday, April 14, 2022 Edit this post

By IndraStra Global News Team

Cover Image Attribute: Image by Igor Ovsyannykov from Pixabay
Cover Image Attribute: Image by Igor Ovsyannykov from Pixabay 
 
On April 13, 2022, the Washington-based World Bank lowered its economic growth prediction for India and South Asia. It cited, "worsening supply bottlenecks and rising inflation risks caused by the Ukraine crisis".

Also, Globally, the IMF reduced its growth forecast for India, the region's largest economy, by one percentage point to 8% from 8.7% for the current fiscal year to March 2023.

In a statement, World Bank Vice President for South Asia Hartwig Schafer said rising oil and food costs will negatively influence people's actual wages. Inflation was the main target of monetary policy in the region following over two years of epidemic restrictions due to the region's reliance on energy imports.

In the case of India, the pandemic's impact on the labor market and inflationary pressures will limit household expenditure in India, the bank warned.

On the other hand, the Bank boosted its growth prediction for Pakistan, the region's second-largest economy, from 3.4 percent to 4.3 percent this year and 4 percent next year.

The World Bank cut the Maldives' growth prediction for this year from 11% to 7.6%, citing high fossil fuel imports and a decline in Russian and Ukrainian tourists.

It upped Sri Lanka's growth prediction for 2022 from 2.1 percent to 2.4 percent but warned that fiscal and external imbalances made the picture unpredictable. Just a day earlier, the Central Bank of Sri Lanka (CBSL) stated that repaying external debt has become "difficult and impossible" as the country's foreign exchange reserves dwindled.

South Asia Economic Focus | Spring 2022 Reshaping Norms: A New Way Forward

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IndraStra Global: The World Bank Released the South Asia Regional Economic Update
The World Bank Released the South Asia Regional Economic Update
By IndraStra Global News Team
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