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[BUSINESS] · Nigeria, India, Benin, Sri Lanka, Ethiopia · 79 sources

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World Bank raises growth forecasts for Africa and South Asia

The World Bank has revised its economic outlook for several regions. In Sub-Saharan Africa, growth is projected to accelerate to 4.3% in 2026, up from 4.1% in 2025. This upward revision applies to nearly three-quarters of the region's countries, including Nigeria, Angola, Ethiopia, and Zambia. However, officials warn that this growth may not be sufficient to reduce extreme poverty or create enough jobs for the rapidly growing population. Additionally, median inflation in the region is expected to rise to 5.5% in 2026 due to higher costs for fuel and food.

In South Asia, the World Bank projects economic growth of 6.9% this year, driven by strong domestic demand and remittances. Despite this resilience, risks such as high energy prices and potential weather shocks like El Niño remain.

In India, the Reserve Bank of India (RBI) has raised its benchmark repo rate by 25 basis points to 5.50% and shifted its monetary policy stance from neutral to calibrated tightening. This move aims to combat persistent inflationary pressures, which are expected to remain above target due to food and fuel costs. The RBI also raised its retail inflation forecast for the 2026-27 fiscal year to 5.2%.

In Benin, the World Bank anticipates robust growth, projecting rates of 8.1% in 2025, 7.8% in 2026, and 7.7% in 2027, supported by infrastructure investments and price stability.

Entities

Andrew Dabalen · Benin · Bernstein Research · India · Nigeria · Paul Procee · Reserve Bank of India · Sanjay Malhotra · South Asia · Sub-Saharan Africa · World Bank

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Sources

Still on soaring poverty [tribuneonlineng.com]
India To Grow by 7. 1% in FY27 [www.deccanchronicle.com]