Kathmandu. The World Bank has forecast that South Asia’s economy will grow by 6.6 percent this year. It also indicates that there will be some slowdown in the coming year.

The World Bank said in a report released today that Bangladesh, Bhutan, India, the Maldives, Nepal and Sri Lanka promoted trade liberalization and increased the use of technology.

According to the World Bank’s new report “South Asia Development Update: Jobs, AI and Trade”, South Asia’s growth is expected to slow to 5.8 percent in 2026. This is 0.6 percent less than the previous estimate. The report points to a global economic slowdown, uncertainty about trade policy, social unrest, and the challenges that AI (AI) brings to the labour market as key risks.

World Bank Vice President for South Asia Johannes Jutt said: “There is great potential in South Asia, but countries need to address the risks in a timely manner. By leveraging AI and reducing trade barriers, countries can increase productivity, bring in private investment, and create new jobs. According to the World Bank, countries in South Asia are still largely closed in terms of international trade.

Similarly, in the service sector, employment has increased by three-quarters in the last decade due to relatively low fees. Similarly, if the trade agreement could be expanded by reducing tariffs in a phased manner, private investment and employment could increase, the report said.

Regarding the use of AI, the report says that AI is changing the way people work and jobs around the world. In South Asia, the use of AI is limited, as much of the work is still based on agriculture. However, young workers in the professional services and information technology sectors are at risk of being replaced by AI.

In areas most affected by AI, job advertisements fell by about 20 percent. But, according to the report, there is a huge potential for AI to increase productivity in areas where it can work in tandem with human capabilities. Statistics show that people with AI skills earn about 30 percent more than other professions.

“Trade openness and the use of AI can make a big difference in South Asia,” said Franziska Onser, World Bank Chief Economist for South Asia. Policies that allow workers to move more easily to new areas will help increase both investment and employment. ”