South Asian economy to growth 7 per cent this year: World Bank

In a new report, the World Bank said the South Asian economy, led notably by a strong recovery in India and the rebound in other economies, is expected to grow 7 per cent this year and 8 per cent the next year.

In its first assessment of South Asian economies this year, the Washington-based multilateral lending institution said 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.

"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," the report said.

"The role of India will be central to improve integration opportunities for smaller neighbours as they respond. While the gains for India are smaller, the gains for smaller neighbours are much bigger."

The South Asian region comprises India, Bangladesh, Pakistan, Sri Lanka, Bhutan, Maldives, Nepal and Afghanistan.

According to the report around 80 per cent of the region's gross domestic product originates in India, South Asia's fastest-growing and biggest economy. Pakistan and Bangladesh account for another 10 and 7 per cent, respectively.