South Asian countries to lead the world growth by 2040, IMF forecasts

According to the latest research led by the International Monetary Fund (IMF), by 2040, South Asian countries would be contributing to one-third of the world’s economy if the growth continues in a similar pattern.

These South Asian countries, under the divisions set by the IMF, include India, Bangladesh, Nepal, Bhutan, and the Maldives.

A paper released by the IMF called ‘Is South Asia Ready for Take-Off? A Sustainable and Inclusive Growth Agenda’ demonstrates how South Asian countries have improved the levels of education and equipped its high population with the necessary skills for the developing world.

According to the Deputy Director of IMF-APAC region, more than 150 million new people will be joining the workforce in South Asia. As far as the countries are considered individually, they need to work in areas like education and foreign direct investment (FDI).

Education and Liberalisation will be key for the South Asian countries

India, with the best resources, would be leading the pack. India has one of the most brilliant tertiary education systems. So India should keep working on that while improving the other aspects like the manufacturing sector. As more private companies enter the manufacturing market, this would create new jobs and opportunities for the upcoming workforce.

Bangladesh is one country that has shown remarkable growth in recent years. However, it is mostly based on the garment industry. There’s a lot that can be done for primary and secondary education. With this, it also needs to improve its infrastructure and open the way for the private sector too.

The key is to improve the education system and upskill the workers and graduates while promoting liberalization and globalization in all the countries. It is difficult to forecast for the next 20 years, but if everything goes according to the IMF’s implementation, the South Asian countries would together contribute to a lot more than 33% of the world’s economy.

However, reforms are necessary for this and the sooner these reforms are implemented, the better for these nations and the world.