South Asia growth seen outperforming other regions

South Asia’s economic outlook is expected to remain strong, outperforming other regions. The GDP is projected to grow by 5.8 per cent in 2024 and 5.7pc in 2025, the United Nations says in its latest report. The ‘World Economic Situation and Prospects September 2024 Update’, released by the United Nations Department of Economic and Social Affairs (DESA), notes that risks to the region’s prospects are tilted to the downside, however, further escalation of geopolitical conflicts and adverse weather conditions could disrupt supply chains and induce commodity price volatility. In developed Asia and the Pacific, Japan’s GDP growth projections have been lowered to 0.8pc for 2024 while remaining unchanged at 1.1pc for 2025. While corporate profits and business confidence have improved, private consumption remains weak amid negative real wage growth since 2022.