World Bank raises South Asia growth forecast to 6.9% for 2026, citing resilient consumer demand

The World Bank raised its growth forecast for South Asia to 6.9% for 2026, citing resilient consumer demand despite an energy shock. The bank's chief Asia economist, Franziska Ohnsorge, said government measures, strong remittances, and domestic demand helped cushion the impact. India, the region's largest economy, is projected to grow 7.1% in 2026/27, down from 8.6% in 2025/26. Risks include high oil prices, weather shocks, and global market correction. The bank urged AI adoption to sustain growth.