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- India – Pakistan trade tensions where India had withdrawn the Most Favored Nation(MFN) status to Pakistan after the Pulwama attack.
