Connect with us

news

South Asian economies recover amidst uncertainties

Published

on

The South Asian economies recover but the recovery remains fragile and uneven, and most countries are far from pre-pandemic trend levels, says the World Bank in its twice-yearly regional update.

The latest South Asia Economic Focus titled Shifting Gears: Digitization and Services-Led Development projects the region to grow by 7.1 percent in 2021 and 2022. While the year-on-year growth remains strong in the region, albeit from a very low base in 2020, the recovery has been uneven across countries and sectors. South Asia’s average annual growth is forecast to be 3.4 percent over 2020-23, which is 3 percentage points less than it was in the four years preceding the pandemic.

India’s economy, South Asia’s largest, is expected to grow by 8.3 percent in the fiscal year 2021-22, aided by an increase in public investment and incentives to boost manufacturing. In Bangladesh, continued recovery in exports and consumption will help growth rates pick up to 6.4 percent in fiscal year 2021-22. In Maldives, GDP is projected to grow by 22.3 percent in 2021, as tourism numbers recover.

“The pandemic has had profound impacts on South Asia’s economy. Going forward, much will depend on the speed of vaccination, the possible emergence of new COVID variants, as well as any major slowdown in the momentum of global growth,” said Hartwig Schafer, World Bank Vice President for the South Asia Region. “While short-term recovery is important, policymakers should also seize the opportunity to address deep-rooted challenges and pursue a development path that is green, resilient and inclusive.”

COVID-19 has left long-term scars on the region’s economy, the impacts of which can last well into the recovery. Many countries experienced lower investment flows, disruptions in supply chains, and setbacks to human capital accumulation, as well as substantial increases in debt levels. The pandemic is estimated to have caused 48 to 59 million people to become or remain poor in 2021 in South Asia.

As countries build back, they have a chance to rethink their long-term development models.

The role of services in the region’s economy has been increasing amid rapid technological change and the accelerated structural transformation of global economic activity in response to the pandemic. The adoption of digital technologies makes services more tradable, enables services to increase productivity of other sectors—including manufacturing—and creates new markets. Some South Asian countries are increasingly providing business and professional services that add value to manufacturing and play a key role in global value chains.

“Countries in South Asia have a strong comparative advantage in exporting services, particularly business processes and tourism, whereas they have struggled to break into manufacturing export markets,” said Hans Timmer, World Bank Chief Economist for the South Asia Region. “To realize the potential of the services-led development, the region needs to rethink regulations and establish new institutions to support innovation and competitiveness.”



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

news

GL explains to UN Special Rapporteur Lanka’s progress related to labour welfare

Published

on

Foreign Minister Prof. G.L. Peiris has explained to UN Special Rapporteur on Contemporary Forms of Slavery, including its causes and consequences, Tomoya Obokata, Sri Lanka’s progress related to labour welfare and the constructive steps taken by the government to eradicate child labour.

The Minister also elaborated on steps taken to bring our labour laws in line with international standards in a number of areas, including child labour, migrant workers and debt bondage. The Special Rapporteur commended Sri Lanka on the progress made with regard to making Sri Lanka a ‘child labour free zone’.

The UN official called on Prof. Peiris on Friday, 26 November, at the Foreign Ministry.

The mandate of the Special Rapporteur includes but is not limited to issues such as: traditional slavery, debt bondage, forced labour, children in slavery and slavery-like conditions, sexual slavery, forced and early marriages as well as issues faced by migrant workers and foreign labour.

The Foreign Minister outlined that Sri Lanka was conscious of protecting vulnerable labour groups and emphasized that Sri Lanka will continue to cooperate with the United Nations system. He stated that visits by Special Procedures Mandate Holders have been helpful in enhancing understanding of the specificities of Sri Lanka’s experiences in related fields as well as in improving domestic processes to be in line with our international commitments.

Continue Reading

news

More gas explosions

Published

on

Two women injured

By Rathindra Kuruwita

There were 11 new explosions related to domestic gas cylinders in the 24 hours that ended at 12 noon yesterday. Among the areas these explosions were reported are Agama, Karana, Hungnam, Walasmulla, Kundasale, Katugastota, Dimbula and Giriulla.

Two women have been injured in these latest explosions. In some instances, the gas cooker wasn’t even on when the explosions happened.

Meanwhile, Litro has introduced the hotline, 1311, for the public to make any complaints with regard to their gas cylinders. Once a complaint is received, a team of technicians will arrive and check the cylinder, the company said.

Litro also urged the public not to try any experiments to see if the cylinders are safe.

Continue Reading

news

Countries tighten travel rules to slow Omicron spread

Published

on

Saudi Arabia, Nigeria, Norway, Ghana confirm first cases of the new Omicron COVID-19 variant as countries tighten travel rules.

The United States, Japan and Malaysia have announced tighter travel restrictions in an attempt to slow the spread of the new Omicron coronavirus variant as more countries confirmed their first cases.

Japan and Hong Kong said on Wednesday they would expand travel curbs, and Malaysia temporarily banned travellers from countries deemed at risk, news agencies reported.

Hong Kong added Japan, Portugal and Sweden to its travel restrictions while Uzbekistan said it would suspend flights with Hong Kong as well as South Africa. Japan, which had already barred all new foreign entrants, reported its second case of the new variant and said it would expand its entry ban to foreigners with resident status from 10 African countries.

Malaysia temporarily barred travellers from eight African countries and said Britain and the Netherlands could join the list.

In North America, air travellers to the US were set to face tougher COVID-19 testing rules.

The Centers for Disease Control and Prevention (CDC) said late on Tuesday that the US would require all air travellers entering the country to show a negative COVID-19 test performed within one day of departure.

Currently, vaccinated international travellers can present a negative result obtained within three days from their point of departure. The new one-day testing requirement would apply to US citizens as well as foreign nationals.

Global spread

Saudi Arabia’s health ministry said it recorded the Gulf’s first confirmed case of the Omicron variant in a citizen returning from North Africa.

Nigeria said it had confirmed two cases of the Omicron variant among travellers who had arrived from South Africa in the past week. Ghana and Norway also reported their first cases of the new variant on Wednesday.

Brazilian health regulator Anvisa said late on Tuesday that two Brazilians had tested positive for the Omicron strain, the first reported cases in Latin America. A traveller arriving in Sao Paulo from South Africa and his wife, who had not travelled, had tested positive.

Germany, which is battling a surge in COVID-19 infections and deaths, reported that four fully vaccinated people had tested positive for Omicron in the south of the country but had moderate symptoms.

It also reported the highest number of deaths from coronavirus since mid-February on Wednesday, as hospitals warned that the country could have 6,000 people in intensive care by Christmas, above the peak of last winter.

Other countries braced for more cases: Australia said at least two people visited several locations in Sydney while likely infectious and Denmark said an infected person had taken part in a large concert.

The World Health Organization (WHO) said “blanket travel bans will not prevent the international spread, and they place a heavy burden on lives and livelihoods”, while advising those unwell, vulnerable or 60 years or over and unvaccinated to postpone travel.

Global health officials have offered reassurances and reiterated calls for people to get vaccinated.

BioNTech’s CEO said the vaccine it makes in a partnership with Pfizer would likely offer strong protection against severe disease from Omicron.

European Medicines Agency Executive Director Emer Cooke earlier said that laboratory analyses should indicate over the next couple of weeks whether the blood of vaccinated people has sufficient antibodies to neutralise the new variant.

The European Union brought forward the start of its vaccine distribution programme for five-to-11-year-old children by a week to December 13.

Britain, the US and European countries have expanded their booster programmes in response to the new variant.

First reported in South Africa a week ago, Omicron has highlighted the disparity between substantial vaccination pushes in rich nations and sparse inoculation in the developing world.

Continue Reading

Trending