World Bank upgrades 2024 growth forecast for South Asia to 6.4 percent

(MENAFN) On Thursday, the World Bank announced an upward revision of its economic growth forecast for South Asia in 2024, raising it to 6.4 percent from a previous estimate of 6 percent. This adjustment positions South Asia to remain the fastest-growing region in the world. In its latest report, the World Bank emphasized that harnessing untapped potential, particularly by enhancing women's participation in the labor force and fostering greater engagement in global trade and investment, could propel the region’s growth even further.

Martin Raiser, the World Bank's Vice President for South Asia, expressed optimism about the region's economic outlook but underscored that there is still room for improvement to fully realize its economic capabilities. He highlighted the importance of implementing key policy reforms aimed at integrating more women into the workforce and eliminating barriers that hinder global investment and trade. Raiser pointed out that research indicates increasing female labor force participation rates in South Asia to match those of men could potentially boost the regional GDP by up to 51 percent.

The report also noted that South Asia has one of the lowest rates of female labor force participation globally, with only 32 percent of working-age women engaged in the labor market as of 2023, compared to 77 percent for working-age men in the region. Franziska Ohnsorge, the World Bank's chief economist for South Asia, remarked that the region's female labor force participation rate significantly lags behind the average of 54 percent observed in emerging markets and developing economies.

Ohnsorge further emphasized that increasing women’s employment requires a collaborative effort from various stakeholders. She stated that the report advocates for a multi-faceted approach where governments, the private sector, communities, and households each play a crucial role in enhancing female labor force participation. This comprehensive strategy is deemed essential for unlocking South Asia's full economic potential and driving sustainable growth in the region.

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