South Asia is expected to grow by 5.8 per cent in the financial year 2023, but slower than its pre-pandemic pace and not fast enough to meet its development goals, said the World Bank in its twice-a-year regional outlook released on Tuesday.

The growth forecast for 2023 is 20 basis points higher than its April projection.

The latest South Asia Development Update, growth in the region is expected to slow to 5.6 per cent in 2024 and 2025, as post-pandemic rebounds fade and a combination of monetary tightening, fiscal consolidation, and reduced global demand weigh on the economic activity.