The World Bank has raised its growth forecast for South Asia for 2026, citing resilient consumer demand and strong domestic activity despite an energy shock, while warning that persistently high oil prices, severe weather and a global market correction could pose risks to the outlook, Reuters reported.
The World Bank now expects South Asia's economy to grow 6.9% in 2026, 60 basis points higher than its previous forecast and 10 basis points above its estimate a year earlier. The upgrade reflects stronger-than-expected consumption momentum, with government measures, robust remittances and resilient domestic demand helping economies absorb the impact of higher energy costs, the World Bank said, Reuters reported.
