On October 13, 2019, World Bank (WB) in its report, “South Asia Economic Focus, Fall 2019 : Making (De)centralization Work”, has lowered India’s growth forecast to 6% for 2019 for the second consecutive year ,after a wide decline in the initial quarters.
Bangladesh and Nepal are estimated to grow faster than India in 2019:WB
As per the report , Bangladesh has become the second-fastest growing economy in South Asia after Bhutan. Bangladesh’s growth rate is expected to increase from 7.9 % to 8.1 % in 2019 with the support of robust macroeconomic framework, political stability, and strong public investments. Its growth is projected at 7.2 % in 2020 and 7.3 % in 2021.
Key points:
i. The average growth rate in Nepal in 2019 & 2020 is estimated to be 6.5 percent.
In contrast, Pakistan is likely to reduce its growth rate to just 2.4% due to the crisis of strict monetary policy is being adopted. Domestic demand is also being affected due to financial discipline.
ii.The Growth in South Asia is estimated to reduce to 5.9 % in 2019, down 1.1 percentage points against April 2019 due to uncertainty about a rebound in the short term.
iii. Main challenge: The main policy challenge for India is to reduce private consumption and remove the structural factors behind weak investment. It would also require efforts to reduce financial slippage, as higher public borrowing than high-rate expectations could put pressure on interest rates.
About World Bank:
Founders: John Maynard Keynes, Harry Dexter White
Headquarters: Washington, D.C., United States
President: David Malpass
About Bangladesh:
Capital: Dhaka
Currency: Bangladeshi taka
Prime minister: Sheikh Hasina
About Nepal:
Capital: Kathmandu
Currency: Nepalese rupee
President: Bidhya Devi Bhandari
Prime Minister: Khadga Prasad Sharma Oli