World Bank2012-03-192012-03-192010978-0-8213-8388-9https://hdl.handle.net/10986/2504South Asia's rebound since March 2009 has been strong and is comparable to that in East Asia. South Asia is poised to grow by about 7 percent in 2010 and nearly 8 percent in 2011, thanks to the strong recovery in India, good performances in Bangladesh, post-conflict bounce in Sri Lanka, recovery in Pakistan, and turnarounds in other countries, including Afghanistan, Maldives, and Nepal. The region's prospective growth is close to pre-crisis peak levels and faster than the high rates of the early part of the decade (6.5 percent annually from 2000 to 2007). The recovery is being led by rising domestic confidence and is balanced in terms of domestic versus external demand, consumption versus investment, and private demand versus reliance on stimulus. Government policy, external support, resumption of private spending, and global recovery are driving the rebound. Strong government fiscal and monetary stimulus packages and, in some cases, external assistance are helping stimulate recovery. Improved optimism is helping the recovery in private spending in India, Bangladesh, Bhutan, and Sri Lanka. World trade and demand recovery are also supporting the rebound in exports and tourism, as are capital inflows. Not everyone is doing equally well, with slower recovery in countries with weaker fundamentals, those with unresolved conflict or post-conflict issues, and those that were heavily exposed to the global downturn (Maldives, Nepal, and Pakistan). Some significant risks are ahead in the global environment, slowing worker remittances and exports in a still hesitant and uncertain global recovery (which recent events in Europe have highlighted), volatile commodity prices, and continuing volatility in global capital flows.CC BY 3.0 IGOACCOUNTINGAGGREGATE DEMANDAGRICULTUREASSET PRICESBALANCE OF PAYMENTSBALANCE SHEETSBANK LENDINGBANK OFFICEBANK OFFICESBASE YEARBASIS POINTSBENCHMARKBILATERAL TRADEBOND ISSUANCESBUSINESS ENVIRONMENTCAPITAL ACCOUNTCAPITAL ACCOUNT RESTRICTIONSCAPITAL ACCOUNTSCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL INVESTMENTCAPITAL OUTFLOWSCASH RESERVECASH RESERVE RATIOCENTRAL BANKCENTRAL BANKSCOMMERCIAL BANKSCOMMERCIAL CREDITCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMPARATIVE ADVANTAGECOMPETITIVENESSCONSUMER PRICE INFLATIONCONSUMER SPENDINGCOPYRIGHT CLEARANCECOPYRIGHT CLEARANCE CENTERCREATION OF JOBSCREDIT GROWTHCREDIT MARKETDEBTDEBTSDEFICITSDEMOGRAPHICDEPOSITSDEREGULATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDISCOUNT RATEDIVIDENDDIVIDENDSDOLLAR PRICEDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC CREDITDOMESTIC CREDIT GROWTHDOMESTIC ECONOMIESDOMESTIC FINANCIAL MARKETDOMESTIC FINANCIAL MARKETSDOMESTIC INTEREST RATESDOMESTIC MARKETSDURABLEECONOMIC COOPERATIONECONOMIC OUTLOOKECONOMIC POLICIESECONOMIC SITUATIONECONOMIC STRUCTURESEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSEQUIPMENTEQUITY MARKETSEQUITY PRICESEXCHANGE RATEEXCHANGE RATE MOVEMENTSEXCHANGE RATESEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT PERFORMANCEEXPORT SECTORSEXPORTERSEXPORTSEXPOSUREEXPOSURESEXTERNAL COMMERCIAL BORROWINGSEXTERNAL DEFICITSEXTERNAL TRADEFARMING HOUSEHOLDSFEDERAL BUDGETFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL MARKETFINANCIAL SAVINGSFINANCIAL SERVICESFINANCIAL SYSTEMFINANCIAL SYSTEMSFISCAL DEFICITFISCAL DEFICITSFIXED EXCHANGE RATESFOOD PRICESFORECASTSFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN FINANCINGFOREIGN FUNDSFOREIGN TRADEFREE BONDSFREE TRADEFREE TRADE AGREEMENTFUND INFORMATIONFUTURE GROWTHGDPGDP PER CAPITAGLOBAL CAPITALGLOBAL CAPITAL FLOWSGLOBAL CAPITAL MARKETSGLOBAL ECONOMIC PROSPECTSGLOBAL ECONOMYGLOBAL MARKETSGLOBAL OUTPUTGLOBAL TRADEGOOD GOVERNANCEGOVERNMENT EXPENDITURESGOVERNMENT POLICYGROSS DOMESTIC PRODUCTGROSS VALUEHOUSEHOLD INCOMESHOUSEHOLD SAVINGSHUMAN CAPITALINCOMEINCOME TAXINDEBTEDNESSINFLATIONINFLATION RATESINFLATIONARY PRESSURESINFLOWS OF CAPITALINFORMATION TECHNOLOGYINFRASTRUCTURE INVESTMENTINFRASTRUCTURE PROJECTSINITIAL PUBLIC OFFERINGINTEREST RATEINTEREST RATESINTERNATIONAL BANKINVENTORYINVESTMENT RATESINVESTOR CONFIDENCELABOR MARKETSLIQUIDITY RATIOLOCAL CURRENCYMACROECONOMIC POLICIESMACROECONOMIC STABILITYMARKET CONDITIONSMARKET SHARESMONETARY AUTHORITIESMONETARY AUTHORITYMONETARY FUNDMONETARY POLICIESMONETARY POLICYNATIONAL INCOMENATIONAL OUTPUTNATURAL DISASTERSNEWLY INDUSTRIALIZED COUNTRIESOIL PRICEOIL PRICESOUTSOURCINGPOLICY RESPONSESPOLITICAL ECONOMYPORTFOLIOPORTFOLIO CAPITALPORTFOLIO CAPITAL INFLOWSPRICE LEVELSPRIVATE CAPITALPRIVATE INVESTMENTPRODUCTIVITY GROWTHPUBLIC DEBTPUBLIC FINANCESPUBLIC INVESTMENTPURCHASING POWERRATES OF INFLATIONREAL GDPREGIONAL INTEGRATIONREGIONAL TRADEREMITTANCEREMITTANCESREPOREPO RATEREPO RATESRESERVE BANKRESERVE REQUIREMENTRESERVESRETURNRETURNSSAFETY NETSAFETY NETSSECONDARY MARKETSECURITIESSHORT-TERM CAPITALSOVEREIGN BONDSOVEREIGN BONDSSTATE BANKSTATUTORY LIQUIDITYSTOCK MARKETSTOCK MARKETSSTOCKSTARIFF BARRIERSTAXTAX RATETAX REVENUESTELECOMMUNICATIONSTIME DEPOSITSTOTAL FACTOR PRODUCTIVITYTRADE ASSOCIATIONTRADE BARRIERSTRADE CREDITSTRADINGTREASURIESTROUGHUNEMPLOYMENTVALUE ADDEDVOLATILITYWEALTHWORLD TRADEWorld Bank10.1596/978-0-8213-8388-9