Indian economy vs Pakistan economy in 2024-25: What World Bank projection says

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Washington: The World Bank has released its estimation of growth of the economies of the South Asian countries, including India, Pakistan and others. The world financial body projected the Indian economy to grow at 7.5 per cent in 2024, while Pakistan’s economy is estimated to grow by 2.3 per cent in the current financial year. The World Bank report further stated that South Asia is likely to remain the fastest-growing region in the world for the next two years.

Indian economy to grow at 7.5%: World Bank

The World Bank in its latest South Asia Development Update said that the Indian economy is likely to be driven by robust growth, while Pakistan and Sri Lanka, which are grappling with major financial crises, are recovering and expected to contribute in growth.

“In India, which accounts for the bulk of the region’s economy, output growth is expected to reach 7.5% in FY23/24 before returning to 6.6% over the medium term, with activity in services and industry expected to remain robust,” the bank said in its report.

The report stated that the business confidence is improving in cash-strapped Pakistan and the country is expected to grow by 2.3 per cent in FY24/25. The World Bank mentioned that in Bangladesh, output is expected to rise by 5.7 per cent in the current financial year. It however, presented a grim picture, stating that the South Asian country will find it difficult to grow because of high inflation and restrictions on trade and foreign exchange constraining economic activity.

“South Asia’s growth prospects remain bright in the short run, but fragile fiscal positions and increasing climate shocks are dark clouds on the horizon,” said Martin Raiser, World Bank Vice President for South Asia. “To make growth more resilient, countries need to adopt policies to boost private investment and strengthen employment growth,” he said.

“South Asia is failing right now to fully capitalize on its demographic dividend. This is a missed opportunity,” said Franziska Ohnsorge, World Bank Chief Economist for South Asia.

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