South Asia retains its spot as the world’s fastest growing region; Nepal stands third among eight South Asian countries

In a report published by World Bank, South Asia has been named as the region with the highest economic growth rate.

The region posted a growth rate of 7% for the year 2019. As per World Bank estimates, this rate is expected to grow to 7.10% in coming years 2020 and 2021.

Among the eight countries in South Asia, Nepal posted the third highest growth rate after India and Bangladesh. As per the report, in the coming years, economic growth rate of the region will be the highest.

The report estimates that Nepal had posted an economic growth rate of 6% this year and will be posting growth rate of 6.10% and 6.20% in the year 2020 and 2021 respectively.

Due to the region being import centric, the growth rate has been affected. The report suggests that to increase the growth rate exports from this region need to be increased. Excessive imports have resulted in loss in Balance of Payments (BOP) and trade deficits.

As per the Hartwig Schafer, World Bank Vice President for the South Asia Region, “the exporting ability of the region has not reached its potential and import pressure has intensified.”

The imports of the region have considerably increased compared to the exports in the past two years as per the report.