South Asia Economic Report October 2006 ; South Asia Economic Report
In: http://hdl.handle.net/11540/2477
This issue of the ( ) is the first in a series of biannual reports on economic and development issues in South Asia. The is a cooperative effort by the South Asia Department and the Central and West Asia Department of the Asian Development Bank. The aims to provide information to policy makers, academics, and ADB management and staff and highlights issues that help promote debate and foster appropriate policies and greater cooperation and integration in the region. The key messages of the are the following: • South Asia is on a high growth path. • Growth is primarily driven by domestic demand and the services sector, unlike in East and Southeast Asia. • Continued sound macroeconomic management, policy and institutional reforms, and targeted public investments in infrastructure are needed to sustain the high growth. • In macroeconomic management, the key areas of concern are inflation and increasing current account deficits. • With regard to policy and institutional reforms, there is a need to focus on improving regulatory quality and government effectiveness.