South Asia: GDP to rise from 2015 to 2016 - report

Tuesday 7 October 2014 13:52 CET | News

South Asian GDP is expected to witness an increase from 2015 to 2016, according to estimates from The World Bank, reports.

Indian GDP is expected to account for nearly 8% of the region’s output, according to The World Bank’s South Asia Economic Focus report. Nevertheless, the GDP growth rates of East Asian countries are predicted to slow, reflecting more conservative monetary policies.

South Asia will improve its current 5.4% growth rate, reaching 6% in 2015 and 6.4% in 2016. East Asia’s growth, on the other hand, is predicted to decrease, with its 7.1% rate dropping to 6.9% for both the current and next fiscal year, and decline further to 6.7% by 2016.

India’s cheaper labor costs, combined with the government raising foreign direct investment (FDI) caps and expanding its special economic zones (SEZs), have served to change the country’s economic outlook.

This aspect is highlighted in the World Bank’s report, noting that the South Asia region has the potential to be the global manufacturing hub, provided that the region maintains its structural reform.

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Keywords: South Asia, Worls Bank, report, remittance, payments , money transfers, Customers, India, mobile, online
Categories: Payments & Commerce
Countries: World
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