The World Bank has said that Bangladesh and Nepal are estimated to grow faster than India and the overall growth in South Asia will slow down this fiscal year.
The global growth rate will also witness a downward trend.
It further projected Pakistan’s growth rate to deteriorate further to a mere 2.4 per cent this fiscal year.
“The monetary policy will remain tight, and the planned fiscal consolidation will compress domestic demand,” the World Bank said.
The World Bank further said that India’s growth rate is projected to fall to 6.0 this fiscal year and then it is expected to gradually recover to 6.9 per cent in 2021 and to 7.2 per cent in 2022.
India’s growth rate in this fiscal is projected to fall to 6.0 and then expected to gradually recover to 6.9 per cent in 2021 and to 7.2 per cent the following year.
“The real GDP growth in Bangladesh in 2019 is estimated at 8.1 per cent, up from 7.9 per cent in 2018,” the World Bank report stated.
“Bangladesh’s growth is projected at 7.2 per cent in 2020 and 7.3 per cent in 2021,” the report further added.
According to World Bank Chief Economist for the South Asia Region Hans Timmer, Bangladesh’s garment industry has been immensely benefitted from the ongoing trade tensions between the US and China.
“In general, what we see in high-frequency data is that Bangladesh is doing better than the rest of the region, especially than India, Sri Lanka and Pakistan. We see that in industrial production, we see that in exports,” NDTV reported quoting Timmer.
Timmer further informed that in Nepal the GDP growth is projected to average 6.5 per cent over this and next fiscal year.
“The growth is backed by strong services and construction activity due to rising tourist arrivals and higher public spending,” he added.