00:00South Asia's economy is now expected to grow 6.9% in 2026, beating earlier forecasts by 60 basis
00:07points. That resilience comes despite a severe energy shock and persistent inflation, which could
00:13still threaten the outlook. The World Bank says strong government support. Steady remittances
00:18and solid domestic demand have kept growth on track even as oil prices remain high.
00:24India, the region's largest economy, is forecast to expand 7.1% next year, up from 6.6% predicted
00:32in June but well below last year's 8.6%. Inflation is expected to stay elevated into 2027, with
00:40effects on growth possibly delayed by up to 18 months, according to World Bank economist
00:45Franziska Onsorga. Meanwhile, a strong El Nino weather event could disrupt agriculture and
00:51rural demand, adding to risks. The bank also highlights AI adoption as a key factor to
00:57sustain growth, noting South Asia is catching up fast but still lags advanced economies.
01:03Disclosure. This video contains stock footage and content created or enhanced using AI-assisted
01:08tools.
