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World Bank Marginally Raises 2026 GDP Growth Forecast for South Asia to 6.3%

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The World Bank marginally raised its 2026 economic growth forecast for South Asia due to better than expected export growth and domestic demand in several economies.

In its latest Global Economic Prospects released Thursday, the international organization revised its growth estimate for the region to 6.3% from 6.2% in January.

Despite the revision, the development lender noted that growth in 2026 would soften from the 7.1% estimated for 2025 as markets reel from disruptions to commodities and international trade amid the Middle East conflict.

Once the conflict subsides, the lender estimates that growth in the region would accelerate to an average rate of 7% per year in 2027-28.

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