Regional Growth Outlook

South Asia has regained the top position in regional growth expectations, offering positive prospects for India. According to the World Economic Forum (WEF), nearly two-thirds of chief economists predict strong economic growth in the region.

• 66% of economists expect strong (60%) or very strong (6%) growth.
• This is a substantial increase from last September, when only 31% were optimistic about South Asian growth.

Global Economic Outlook

The global economic outlook remains challenging, with 53% of economists anticipating a weakening global economy in the coming year. Despite this, the global economy shows resilience to recent shocks.

• This is an improvement from September's survey, where 72% expected further weakening.
• Significant uncertainties persist globally.

Inflation and Monetary Policy in South Asia

Inflation expectations in South Asia have moderated, with notable changes in economist predictions.

• 69% foresee moderate inflation, up from 64% in September.
• The expectation of high inflation has dropped from 18% to 3%.
• 68% expect monetary policy to remain unchanged.
• 85% anticipate no major changes in fiscal policy, an increase from 80% in September.

Artificial Intelligence and Productivity

AI is projected to significantly enhance productivity in South Asia, particularly in India.

• 50% of economists expect AI-driven productivity gains within one to two years.
• This is similar to East Asia and the Pacific, where 60% share this view.
• South Asia is better positioned than Europe for AI-driven productivity, which may take up to three years there.
• 36% anticipate substantial impacts from AI-related investments in data centers and energy infrastructure over the next two years.