South Asia remains fastest-growing sub-region in world: ADB

ISLAMABAD: The Asian Development Bank (ADB) has said South Asia will remain the fastest-growing sub-region in the world in its Asian Development Outlook Supplement.

The region projected by the ADB to grow by 6.8 percent in year 2019 and 6.9 percent in 2020.

Pakistan’s outlook is for a sharp drop in growth as growth rate in the country remained at 3.3 percent in the past fiscal year, which is the minimum in past eight years, bank said.

Pakistan’s economy faces key challenges of current account and trade deficits, the report said.

Inflation rate in Pakistan registered sharp increase in previous year , it said.

Following a pronounced widening of its balance of payments deficit in 2018, Pakistan likely embarks on austerity measures supported by the International Monetary Fund, the ADB said.

ADB outlook put Bangladesh on top in terms of speed of growth among 45 Asia-Pacific nations.

The country’s growth accelerated in fiscal year 2018 on higher public investment and stronger consumption demand with a revival in exports, it said.

ADB lowered India’s GDP growth forecast to 7 per cent for the current year on the back of fiscal shortfall concerns. “India is expected to grow by 7 per cent in 2019 (FY20) and 7.2 per cent in 2020 (FY21), slower than projected in April,” ADB said

The ADB has forecast lowering of inflation in the South Asian region.

The bank also predicted an expected decline in inflation across the world due to cut in crude oil and food prices.