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Economic growth in South Asia is estimated to have slowed slightly to 5.7 percent in 2023, yet it remains the fastest among emerging market and developing economy regions, according to a new report published by World Bank. This is largely attributed to a robust expansion in India, which accounted for more than three-fourths of the regional output in 2023. Excluding India, however, activity was more subdued.

In India, despite some slowing, a strong performance in 2023 was driven by robust public investment growth and vibrant services activity. Merchandise exports slowed due to weak external demand, but domestic demand for consumer services and exports of business services sustained India’s economic growth, according to the report.

In Bangladesh, growth is estimated to have slowed in the fiscal year 2022/23 (July 2022 to June 2023), as activity was hampered by import restrictions and rising material and energy costs, as well as mounting external and financial pressures. 

Output in Pakistan is estimated to have contracted during the FY 2022/23. Inflation remained elevated, partly reflecting large currency depreciation in early 2023. However, towards the end of 2023, Pakistan's currency exhibited signs of stabilization. 

Output in Sri Lanka is also estimated to have declined in 2023, while there has been progress in sovereign debt restructuring. In Afghanistan, despite declining food prices in 2023, poverty rates remained high, exacerbated by strong earthquakes in October 2023.

Growth in South Asia is expected to edge slightly lower to a still-robust 5.6 percent pace in 2024, before firming to 5.9 percent next year. Domestic demand, including public consumption and investment, will remain major drivers of economic growth. A pickup in external demand, albeit still subdued, is also expected to contribute to growth, the report says.  

In India, growth is expected to edge up to 6.4 percent in the FY2024/25 (April 2024 to March 2025) after softening to 6.3 percent in the FY2023/24. Investment is envisaged to decelerate marginally but remain robust, supported by higher public investment and improved corporate balance sheets.

In Bangladesh, growth is forecast to slow to 5.6 percent in the FY2023/24. Inflation is likely to remain elevated, weighing on private consumption. Import restrictions are expected to continue and impede private investment.

In contrast, growth is projected to pick up in Nepal, with monetary policy easing and the delayed effects of lifting import restrictions, the report says.

The report further says: “The outlook in Pakistan remains subdued for FY2023/24. Monetary policy is expected to remain tight to contain inflation, while fiscal policy is also set to be contractionary. The outlook in Sri Lanka remains uncertain, amid debt restructuring negotiations, particularly with private creditors.” 

Investment related to the tourism sector will support growth in the Maldives, while the commissioning of a new hydro plant in Bhutan is expected to contribute to a pickup in growth in the next fiscal year.

The World Bank has also explored some risks as well. The report says: “Risks to the forecast remain tilted to the downside, with the most pressing concerns revolving around higher energy and food prices caused by an escalation of the conflict in the Middle East and adverse spillovers stemming from larger-than-expected increases in policy rates in advanced economies.” 

In addition, elevated external and fiscal financing needs, the growing frequency and severity of extreme weather events, and sharper-than-expected growth slowdown in trading partners also pose risks to the region. Heightened uncertainty around elections in 2024 in some countries is also a downside risk in the region. However, the implementation of growth-friendly policies after elections could improve growth prospects.

The Nepal Stock Exchange (NEPSE) plunged by 0. 62 points to close at 2,088. 99 points on Thursday. Similarly, the sensitive index dropped by 2. 19 points to close at 384. 14 points.

A total of 22,132,768-unit shares of 307 companies were traded for Rs 4. 30 billion.

Meanwhile, Nirdhan Utthan Laghubitta Bittiya Sanstha Limited, Samaj Laghubittya Bittiya Sanstha Limited, Mid Solu Hydropower Limited, Trishuli Jal Vidhyut Company Limited and Muktinath Krishi Company Limited were the top gainers today with their price surging by 10. 00 percent. Likewise, 9% Nepal SBI Bank Rinpatra 2089 was the top loser as its price fell by 9. 60 percent.

At the end of the day, the total market capitalization stood at Rs 3. 28 trillion.

The price of gold has dropped by Rs 200 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 118, 300 per tola today. It was traded at Rs 118, 500 per tola on Wednesday

Meanwhile, tejabi gold is being traded at Rs 117, 750 per tola. It was traded at Rs 117, 950 per tola.

Similarly, the silver is being traded at Rs 1,410 per tola today.

Himalaya Airlines has become the country’s first and the only IOSA Registered Operator. The Airlines received its milestone achievement with the issuance of IOSA certification by the International Air Transport Association (IATA) on 28 Dec 2023 with the validity until 3 Mar 2025.

The certificate reads “Himalaya Airlines Pvt Ltd has been successfully registered as an IOSA Operator under the IATA Operational Safety Audit program (IOSA), in accordance with the provisions of the IOSA Program Manual.”

The IOSA certification for Himalaya Airlines confirms that Himalaya Airlines adheres to the highest safety standards and best practices, providing passengers with a secure and reliable travel experience. As the first and only IOSA certified airline in Nepal, Himalaya Airlines gains international recognition for its commitment to safety. The rigorous IOSA audit process also evaluates and enhances various aspects of H9’s operations, leading to certifiable efficiency, risk management, and overall performance, states a press release issued by the company.

Vijay Shrestha, Vice President of Himalaya Airlines, expressed, “This milestone signifies a positive shift in Nepal's aviation industry. We are proud to lead by example, setting new benchmarks for safety and operational excellency. This certification not only validates our ongoing efforts to maintain the highest safety standards but also positions us as a trusted airline in the global aviation community. We look forward to continuing to raise the bar in the years to come.”

The IATA Operational Safety Audit (IOSA) is a globally recognized and standardized audit program for airlines developed by the International Air Transport Association (IATA) to assess the operational management and control systems of an airline with the primary goal of enhancing operational safety and promoting a common safety standard within the aviation industry.

This process involves an audit of an airline’s policies, procedures, and practices. It includes both document reviews and on-site assessments. After successful completion of Audit and compliance of all findings IOSA certification is provided to airlines. IOSA registration is thus seen as a mark of safety excellence, and is also the prerequisite for IATA membership.