The World Bank has released its latest economic outlook, focusing on the growth prospects for South Asia and analyzing how the region can capitalize on the green energy transition. According to the report, growth in South Asia is anticipated to surpass previous expectations, marking a broad-based upturn that outpaces other emerging market and developing economies.
The report highlights South Asia's limited trade openness as a constraint on leveraging diverse geopolitical ties and benefiting from the reshaping of global supply chains. The lack of openness could hinder the region's ability to fully integrate into these evolving networks.
An analysis within the report shows that households with lower wealth in urban areas across South Asia experience more heat than their wealthier counterparts. This pattern suggests that targeted policies could support vulnerable groups, particularly smaller firms in India, which are more exposed to heat.
In terms of remittance inflows, countries receiving higher remittances have shown increased imports but decreased private investment. The report includes data spanning decades from 1980-2023 and covers up to 139 emerging market and developing economies (EMDEs).
Female employment remains low in South Asian countries compared to other EMDEs. Despite varying national definitions of labor force participation rates, most countries in the region rank in the bottom quartile except Bhutan and Maldives.
Furthermore, legal frameworks in South Asia are identified as among the least women-friendly globally. The region also exhibits conservative gender attitudes, with 70 percent of respondents opposing women working outside the home.
The Macro Poverty Outlook provides additional insights into these findings.