South Asia, home to nearly two billion people, has been among the fastest-growing regions in the world over the past decade. Yet intraregional trade is well below expected levels, suggesting that regional spillover from the growth of some individual countries has been limited.
Given that trade is a conduit for growth, job creation and poverty reduction, understanding and addressing the factors that have held back greater engagement is important, say experts.
In its latest South Asia Economic Focus report, the World Bank forecasts that the region’s average annual growth in 2020-23 will be 3.4%, which is less than what it was in the four years prior to the coronavirus pandemic. Inward and outward intra-regional foreign direct investment (FDI) is only around US$3 billion, less than 1% of all inward FDI worldwide. Other indicators, such as women-led businesses…
