INSUBCONTINENT EXCLUSIVE:
the high levels of debt and debt service, reduce the fiscal deficit, restore external stability, and mitigate the adverse impacts on the
poor and vulnerable, says the World Bank in its twice-a-year regional update.Released today, the latest South Asia Economic Focus Reshaping
Norms: A New Way Forward projects the region to grow by 6.6 percent in 2022 and by 6.3 percent in 2023
The 2022 forecast has been revised downward by 1.0 percentage point compared to the January projection, mostly due to the impacts of the war
in Ukraine.Countries in South Asia are already grappling with rising commodity prices, supply bottlenecks, and vulnerabilities in financial
Country Director for Maldives, Nepal, and Sri Lanka
This would require reducing fiscal deficits especially through strengthening domestic revenue mobilization
Sri Lanka also needs to find feasible options to restore debt sustainability
The financial sector needs to be carefully monitored amid high exposure to the public sector and the impact of the recent currency
The necessary adjustments may adversely affect growth and impact poverty initially but will correct the significant imbalances, subsequently
providing the foundation for stronger and sustainable growth and access to international financial markets
Mitigating the impacts on the poor and vulnerable would remain critical.In South Asia, though GDP growth continues to be solid during the
recovery, all countries in the region will face challenges ahead
On a positive note, exports of services from the region are on the rise as the pandemic subsides.The war and its impact on fuel prices can
provide the region with much-needed impetus to reduce reliance on fuel imports and transition to a green, resilient and inclusive growth
The report recommends that countries steer away from inefficient fuel subsidies that tend to benefit wealthier households and deplete public
South Asian countries plan to move towards a greener economy by gradually introducing taxation that puts tariffs on products which cause
environmental damage.Another challenge the region faces is the disproportionate economic impact the pandemic has had on women
The report includes in-depth analysis of gender disparities in the region and their link with deeply rooted social norms, and recommends
This article first appeared/also appeared in https://adaderana.lk
