However, sustained political stability after the 2026 elections and rapid progress on structural reforms can support a stronger recovery. South Asia’s growth is expected to slow to 6.3% in 2026—from 7% in 2025—due to disruptions in global energy markets. “Despite a challenging global environment, South Asia’s growth prospects remain strong,” said Johannes Zutt, World Bank Vice President for South Asia. “Countries need to implement critical policy reforms to sustain growth, create jobs, and increase resilience to shocks. Governments around the world are increasingly using industrial policy, and in South Asia industrial policies are implemented at roughly twice the rate of other emerging economies.

Source: Bangladesh Sangbad Sangstha April 08, 2026 11:59 UTC