Bangladesh, Nepal to grow faster than India: World Bank report

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News:The World Bank has released its South Asia Economic Focus report, 2019.

Facts:

Key takeaways from the report:

  • The report is titled “Exports Wanted”.It highlights the export potential of the South Asian region being not used to the fullest.
  • The report says that Bangladesh and Nepal are growing faster than India. 
  • However, it said that India is still a fast-growing economy.But it was relatively hit hard by the recent global economic slowdown.
  • The report also said that South Asia will remain the fastest growing region in the world despite the report’s estimation of growth in South Asia to fall to 5% in 2019.
  • The report has also highlighted that the exports growth of South Asia are accelerating and import growth is slowing.But it said that the South asian countries are exporting only a third of their potential
  • Further,it also said that the Foreign Exchange reserves have declined in South Asian region.

Trade policy changes affecting South Asia:

  • The report has said that the garment industry of Bangladesh has benefited immensely from the ongoing trade tensions between the US and China.
  • United States had terminated India’s designation as a beneficiary developing country under the Generalised System of Preferences(GSP) Programme.
  • The import tariffs announced by several countries to protect domestic industries.
  • India – Pakistan trade tensions where India had withdrawn the Most Favored Nation(MFN) status to Pakistan after the Pulwama attack.