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South Asia: A Macro Overview

  • Pravakar Sahoo
  • Geethanjali Nataraj
  • Ranjan Kumar Dash
Chapter

Abstract

Chapter 2 presents the economic reforms and performance of the five major South Asian countries and the region as a whole. The South Asian countries have performed well with respect to all macroeconomic indicators in the last two decades leading to increased economic growth and per capita income and an increase in trade and investment growth of the region. Growth performance of the five South Asian countries indicates that Bangladesh, Sri Lanka, and India had higher GDP growth rates during their post-reform period compared to the 1980s. In contrast, Pakistan and Nepal had higher growth during the 1980s compared to the 1990s or 2000s. In terms of per capita income growth, it improved in all countries except Pakistan during the reform period. Sectoral contribution of GDP indicates that the contribution of agriculture has declined; the industrial and services sectors have continued to drive the growth prospects. Other important macro indicators like gross domestic savings, gross domestic capital formation, trade, current account balance, capital account, and foreign exchange reserves improved in all these countries except Pakistan during the post-reform period.

In order to sustain their high growth rates, South Asian countries have tried to implement second- and third-generation reforms to the region that has also made an attempt to improve political instability, security, and intra-regional economic cooperation. Despite the many challenges faced by the region, there is enormous potential and the future prospects look bright. South Asia’s growth trajectory is all set to be one of the defining stories of the world economy in the near future, and this provides opportunities for foreign investors to explore the South Asian markets.

Keywords

Economic Reform Tariff Rate South Asian Country Fiscal Deficit Foreign Exchange Reserve 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer India 2014

Authors and Affiliations

  • Pravakar Sahoo
    • 1
  • Geethanjali Nataraj
    • 2
  • Ranjan Kumar Dash
    • 3
  1. 1.Institute of Economic Growth (IEG)Delhi University EnclaveDelhiIndia
  2. 2.Observer Research Foundation (ORF)DelhiIndia
  3. 3.Indian Council for Research on International Economic Relations (ICRIER)DelhiIndia

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