The Kingdom of Bhutan is considered a development success story, with decreasing poverty and improvements in human development indicators. The Bank's engagement in Bhutan is aimed at supporting the government's goal of Gross National Happiness.
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Growth rebounded in 2014 along with the
lift of restrictions over credit and imports and with
hydropower investment back on schedule. Bhutan’s significant
dissaving... Show More + is illustrated by a large current account deficit.
Priority will have to be given to private sector development
and asset diversification if Bhutan wants to reduce its
vulnerability to donor finance and address rising youth unemployment. Show Less -
In Afghanistan, a successful political transition needs to be supplemented by a stable security environment as well as by adequate management of the current fiscal crisis. Agriculture and services are... Show More + likely to be the key drivers of growth in the immediate future. With stability, growth could increase from 2.5 percent in 2015 to 5.0 percent the year after.In Bangladesh, the economy is maintaining macroeconomic stability, despite the political turmoil, structural constraints, and global volatility. The protracted political unrest has reduced growth by one percentage point. Growth in 2015 is now projected at 5.6%. However, a recovery driven by strong domestic demand is possible. It will require a continuation of single-digit inflation, an improved investment climate, and above all political stability.Economic activity in Bhutan is expected to gain momentum with real GDP growing at 6.7 percent in 2015, driven by new hydropower construction and innovative tourism measures such as “Visit Bhutan 2015.”In India, GDP growth is expected to accelerate to 7.5 percent in Fiscal Year 2015/16. It could reach 8.0 percent in FY2017/18, on the back of significant acceleration of investment growth to 12 percent during FY2016-FY2018. The country is attempting to shift from consumption- to investment-led growth, at a time when China is undergoing the opposite transition.Nepal’s growth will remain in the 4.5 to 5 percent range. The fact that consumption remains the country’s main growth driver leaves it vulnerable to a slowdown in remittance growth. To improve its growth performance the country needs to boost infrastructure development to support private sector investment.In Pakistan, a gradual recovery to around 4.6 percent growth by 2016 is aided by low inflation, and fiscal consolidation. Further progress depends on tackling key growth constraints including frequent power cuts, a cumbersome business environment, and low tax revenue.In Sri Lanka, growth is expected to decline to 6.9 percent in 2015 due to slowing construction activity. This trend is partially set off by consumption growth thanks to increased public sector wages and higher disposable income. With competitiveness remaining a challenge, the new government is reassessing the previous investment-led growth model. Show Less -