World Bank Cuts South Asia’s Growth Outlook Sharply (1)

The World Bank cut its forecast for South Asia’s economic growth by nearly a percentage point, in part because of punishing US tariffs on India.

In its Tuesday report, the Washington-based institution projected South Asia’s growth to ease to 5.8% in 2026, down from 6.6% this year, a sharper slowdown than previously anticipated.

The projection for 2026 is the region’s lowest in 25 years, excluding periods of global recession or economic downturns, the lender said.

“South Asia has enormous economic potential and is still the fastest growing region in the world. But countries need to proactively address risks to growth,” ...