South Asia development update October 2023: toward faster, cleaner growth
At just under 6 percent, South Asia is expected to grow faster than any other developing country region this year—but slower than its pre-pandemic pace and not fast enough to meet its development goals. The region faces many risks to this outlook, including due to fragile fiscal positions created by high government debt. Countries need to urgently manage and reduce fiscal risks, and over the longer term, accelerate growth and create jobs in a sustainable manner. The global clean energy transition is an opportunity for the region to lift productivity, cut pollution, reduce reliance on fuel imports, and create jobs. To capitalize on this, countries need to encourage the adoption of advanced energy-efficient technology and take steps to protect vulnerable workers impacted by labor market shifts.