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The report states that South Asia’s growth is expected to remain robust at 6.6 per cent this year, but warns of a slowdown to 5.8 per cent in 2026.

The World Bank’s twice-a-year regional outlook highlights that while the region continues to lead global growth, several risks could affect its momentum. These include global economic uncertainty, trade policy shifts, socio-political tensions, and disruptions in labour markets due to emerging technologies like artificial intelligence (AI).

“South Asia has enormous economic potential and is still the fastest-growing region in the world. But countries need to proactively address risks to growth,” said Johannes Zutt, World Bank Vice President for South Asia. He added that governments could strengthen productivity and create jobs by

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