WASHINGTON — Oct. 6, 2026 — The World Bank expects South Asia’s economy to expand 6.9% this year, exceeding its earlier projection as domestic demand helps the region withstand global shocks.
The bank’s regional outlook, released Tuesday, forecasts slower growth of 6.7% in 2027. It points to remittances and structural reforms as support for demand.
Energy and climate risks remain
Persistently high energy prices could fuel inflation and tighten financial conditions, the bank warns. A severe El Niño could threaten farming and food security, while a reversal in global AI investment could create financial strain.
AI adoption as a growth opportunity
The report identifies opportunities for AI in exports and public services, including health, education and agriculture. It recommends investment in workforce skills, digital infrastructure and rules that protect privacy and data security.
Source: World Bank regional outlook and report link.
Graphic: Zark News illustration using World Bank forecasts.
