South Asia's Growth Prospects Dimming Amid Global Uncertainty

April 23, 2025—Increasing domestic revenues key to stronger fiscal buffers
Amid increasing uncertainty in the global economy, South Asia's growth prospects have weakened, with projections downgraded in most countries in the region. Stepping up domestic revenue mobilization could help the region strengthen fragile fiscal positions and increase resilience against future shocks, says the World Bank in its twice-yearly regional outlook.

Released today, the latest South Asia Development Update, Taxing Times, projects regional growth to slow to 5.8 percent in 2025-0.4 percentage points below October projections-before ticking up to 6.1 percent in 2026. This outlook is subject to heightened risks, including from a highly uncertain global landscape, combined with domestic vulnerabilities including constrained fiscal space.