The near-term outlook for South Asia is expected to remain robust, with growth projected at 5.7 per cent in 2025 and 6.0 per cent in 2026, driven by strong performance in India as well as economic recovery in a few other economies, the United Nations World Economic Situation and Prospects (WESP) report released on Thursday said. The economy of India, the largest in the region, is forecast to expand by 6.6 per cent in 2025, primarily supported by robust private consumption and investment. Additionally, capital expenditure on infrastructure development is expected to have strong multiplier effects on growth in the coming years. Strong export growth in services and certain goods categories, particularly pharmaceuticals and electronics, will bolster economic activity. On the supply side, expansion in the manufacturing and services sectors will keep driving the economy throughout the forecast period. Meanwhile, favourable monsoon rains in 2024 have improved the summer-sowing areas for all major crops, boosting agricultural output expectations for 2025.

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