Sri Lanka’s economy is projected to grow by 3.3 percent in 2021, while the South Asian region is expected to expand by 7.1 percent, the World Bank said.
The WB’s latest South Asia Economic Focus titled ‘Shifting Gears: Digitization and Services-Led Development’ shared that while the year-on-year growth remains strong in the region, albeit from a very low base in 2020, the recovery has been uneven across countries and sectors.
South Asia’s average annual growth is forecast to be 3.4 percent over 2020-23, which is 3 percentage points less than it was in the four years preceding the pandemic.
A gradual recovery will likely lead to corresponding improvements in labor market conditions. Most countries in South Asia are far from pre-pandemic trend levels, the WB said in its twice-yearly regional update.