“South Asia future powerhouse of global economy” | Daily News

“South Asia future powerhouse of global economy”

South Asia’s future holds the promise of continued poverty reduction and rapid economic development that could make the region a powerhouse of the global economy, said Deputy Managing Director, IMF Antoinette Sayeh.

She said this while making the opening Remarks South Asia’s Path to Resilient Growth Conference and Book Launch in New Delhi on Friday.

“Unlocking this potential, however, requires bold reforms. History has shown that all South Asian countries have benefited from reform episodes in the past. They must build on these earlier successes and emerging opportunities to unleash a renewed dynamism.”

At the same time, the region’s large infrastructure needs must be met despite limited fiscal space, through a combination of enhanced but prudent quality of public investment, and alternative financing strategies. And efforts must continue to strengthen the effectiveness of monetary policy frameworks.

Macroeconomic policies are responding to the significant headwinds, with fiscal policy measures supporting vulnerable groups and monetary policy addressing persistently high inflation. A world class digital public infrastructure is facilitating innovation, productivity improvements, and access to public and financial services. India is making important progress on its structural reform agenda, and further implementation of the reforms would help unlock its growth potential.

She recalled that over the past two decades, extreme poverty has declined from 500 million to fewer than 250 million people in Bangladesh, Bhutan, India, the Maldives, Nepal, and Sri Lanka, a remarkable success story for the region and the world.,

“Per capita income during this period has doubled, helping to deliver improved health care, education, and infrastructure, as well as better access to financial services, the Internet, and mobile technology to millions of South Asians”.

“However just as the global economy was emerging from the COVID-19 pandemic, the world is being confronted with new shocks and pronounced economic uncertainty. Now, poverty reduction cannot be taken for granted and is instead the result of policy choices.”

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