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Time of India
04-06-2025
- Business
- Time of India
More roof leaks and power cuts? World Bank says climate change will hit homes hard
More than 60% of households and firms across South Asia have experienced extreme weather events in the past five years. This is the stark finding from a new World Bank report titled From Risk to Resilience: Helping People and Firms Adapt in South Asia. The report warns that the situation will worsen, with over 75% expecting severe weather to affect them in the coming decade. South Asia is confronting rising threats from intense heat and flooding. Nearly 90% of the population is projected to face extreme heat by 2030, and more than one in five people are at risk of severe flooding. The report signals a critical need for stronger climate adaptation. Private sector key to reducing climate damage The World Bank points out that much of the effort to adapt to these growing climate risks must come from the private sector. Governments, with limited budgets, cannot meet the challenge alone. In a press release, the World Bank stated, "More than 60 per cent of households and firms have experienced extreme weather in the last five years, and more than 75 per cent expect it for the next decade. Many households and businesses are already taking steps to adapt to climate risks." Around 80% of households and 63% of firms have taken some adaptation measures, but these are often basic actions—like raising house foundations or installing fans. More advanced options, such as planting climate-resilient seeds or relocating from high-risk areas, are less common. Live Events You Might Also Like: World's biggest weather agency predicts heavier rainfall for Indian subcontinent, hotter years ahead worldwide The report notes that market barriers and income constraints hold back stronger adaptation. Households with better education or access to formal finance are more likely to adopt advanced strategies. Similarly, better-managed companies face fewer regulatory obstacles and are more adaptable. Franziska Ohnsorge, World Bank Chief Economist for South Asia, said, "Private sector adaptation could reduce one third of the region's projected climate damage, but this requires governments to strengthen enabling environments." She added, "Adaptation is most effective when markets function well and when essential services like transport, water, healthcare, and digital connectivity are widely accessible." Governments must act to support adaptation The report calls for governments to act swiftly to remove barriers limiting adaptation. Martin Raiser, World Bank Vice President for South Asia, stated, "The urgency is growing. People and firms are already adapting, but they are doing so with limited tools and few resources." You Might Also Like: Earth's average temperature for 2025-29 likely to exceed 1.5 deg C limit: WMO He urged governments to focus on removing distortions in land and labour markets, expanding access to finance, and investing in public infrastructure that supports climate resilience. Local examples offer hope. Cities like Ahmedabad are leading with heat action plans to protect residents from rising temperatures. These demonstrate how targeted investments and strong institutions can boost local adaptation efforts. The report recommends policies based on three principles: Implement comprehensive adaptation measures. Prioritise solutions supporting both development and climate resilience. Align adaptation strategies with long-term development goals to ensure lasting progress. You Might Also Like: UK summer 2025 forecast hotter with more heatwaves and searing temperatures Global temperature forecasts signal continued risk Parallel to the World Bank's findings, the World Meteorological Organization (WMO) released a report forecasting record-high global temperatures over the next five years. The WMO predicts an 80% chance that at least one year between 2025 and 2029 will be warmer than the current record set in 2024. There is also an 86% chance that at least one of these years will be more than 1.5°C above the pre-industrial average (1850–1900). The five-year average temperature between 2025 and 2029 is likely to exceed 1.5°C warming, a sharp increase in risk compared to previous forecasts. WMO Deputy Secretary-General Ko Barrett said, 'We have just experienced the ten warmest years on record. Unfortunately, this WMO report provides no sign of respite over the coming years, and this means that there will be a growing negative impact on our economies, our daily lives, our ecosystems and our planet.' The report highlights the Arctic warming at more than three and a half times the global average, continuing reductions in sea ice, and varied regional precipitation patterns—wetter conditions in northern Europe and Siberia, drier conditions in the Amazon. Rising heatwaves and floods demand urgent action These warming trends will bring more heatwaves, intense rainfall, droughts, melting ice sheets, and rising sea levels. Every fraction of a degree increase heightens these risks. The WMO stresses that monitoring and climate prediction remain essential tools to help policymakers and communities prepare for these impacts. South Asia, already grappling with flooding and heat, must accelerate its adaptation efforts. The World Bank report stresses that combining policy reforms, private sector action, and stronger government support offers the best chance to reduce future damage and build resilience. You Might Also Like: Singapore gets relief from scorching heat; prepares for breezier, cooler weather as monsoon season sets in
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Business Standard
03-06-2025
- Business
- Business Standard
Over 75% households, firms to face extreme weather next decade: World Bank
More than 60 per cent of households and firms have experienced extreme weather in the last five years, and over 75 per cent expect it in the next decade, a new report by the World Bank revealed on Tuesday. South Asia is facing a sharp rise in extreme weather, with nearly 90 per cent of the population expected to be exposed to intense heat, and more than one in five people at risk of severe flooding by 2030, the World Bank warned in its From Risk to Resilience: Helping People and Firms Adapt in South Asia report. The region is also expected to face more frequent and severe weather shocks over the coming decade. By 2030, 1.8 billion people (89 per cent of the region's population) are projected to be exposed to extreme heat, while 462 million people (22 per cent) are projected to be exposed to severe flooding. However, when households receive early warnings, nearly 90 per cent take pre-emptive action to reduce damages. Households' access to early warning systems is uneven: in vulnerable coastal and riverine areas, most households have access to early warnings for cyclones, but fewer than half have access to early warnings for floods and other shocks, according to the report. These findings call for better early warning systems, targeted programmes to assist vulnerable households during shocks in a timely fashion, and policies to help households adapt to the growing risk of extreme weather shocks. Many households and businesses are already taking steps to adapt to climate risks. Around 80 per cent of households and 63 per cent of firms have taken some measures to adapt. However, most of these measures are basic, such as raising house foundations or installing fans. More advanced options, like using climate-resilient seeds or relocating from high-risk areas, remain less common. Firms that have experienced, or expect, more weather shocks have been more likely to undertake adaptations, while firms with less-advanced management practices, and firms facing greater financial and regulatory obstacles, have adapted less. These results suggest there is scope for policies to encourage adaptation by improving access to information about adaptation options, by helping firms strengthen managerial capabilities, and by easing regulatory burdens and expanding access to finance. 'The urgency is growing. People and firms are already adapting, but they are doing so with limited tools and few resources,' said Martin Raiser, World Bank vice president for South Asia. 'Governments must act quickly to remove the barriers that prevent more effective adaptation. This includes removing distortions in land and labour markets, expanding access to finance, and investing in public infrastructure to support people and businesses as they respond to climate risks.' The report finds that market barriers and income constraints are holding back stronger adaptation. Households with more education or access to formal finance are more likely to adopt advanced strategies. Similarly, better-managed firms with fewer regulatory barriers tend to be more adaptive. Removing these barriers would enable more effective adaptation by households and firms. 'Private sector adaptation could reduce one third of the region's projected climate damage, but this requires governments to strengthen enabling environments,' said Franziska Ohnsorge, World Bank chief economist for South Asia. 'Adaptation is most effective when markets function well and when essential services like transport, water, healthcare, and digital connectivity are widely accessible.' The report calls for both targeted adaptation efforts and broader development measures that also build climate resilience. Governments have a critical role to play, even with limited fiscal space. They can expand access to localised climate information, promote weather-indexed insurance, and support the use of resilient technologies such as energy-efficient cooling systems. Public investments in infrastructure that keep people safe and connected, such as roads, drainage, power supply, and mobile networks, are also essential. The report also calls for policy action guided by three core principles. First, implement a comprehensive package of adaptation measures. Second, prioritise solutions that support both development and climate resilience. Third, align adaptation strategies with long-term development goals to ensure lasting progress. Governments in South Asia can best build resilience by creating the conditions that empower households and firms to adapt.
Fibre2Fashion
25-04-2025
- Business
- Fibre2Fashion
South Asia's economic growth projected to slow in 2025: World Bank
South Asia's growth is projected to slow to 5.8 per cent in 2025, 0.4 percentage points (ppts) below the October forecast, before recovering to 6.1 per cent in 2026, according to the World Bank's latest South Asia Development Update, titled 'Taxing Times'. This outlook is vulnerable to increased risks, including a highly uncertain global environment and domestic challenges, such as limited fiscal capacity. South Asia's growth outlook has weakened, with projections revised down for most countries in the region due to rising uncertainty in the global economy. Stepping up domestic revenue mobilisation could help the region strengthen fragile fiscal positions and increase resilience against future shocks, the World Bank said in its twice-yearly regional outlook. For India, the growth is expected to slow from 6.5 per cent in FY24/25 to 6.3 per cent as in FY25/26 as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty. South Asia's growth is projected to slow to 5.8 per cent in 2025, down 0.4 ppts from previous forecasts, with risks from global uncertainty and domestic challenges. India's growth will slow to 6.3 per cent, while Bangladesh and Pakistan face slower recovery. The World Bank urges increased domestic revenue mobilisation to strengthen fiscal positions, recommending tax reforms and digital technology. In Bangladesh, growth is expected to slow in FY24/25 to 3.3 per cent amid political uncertainty and persistent financial challenges, and the growth rebound in FY25/26 has been downgraded to 4.9 per cent. Pakistan's economy continues to recover from a combination of natural disasters, external pressures, and inflation, and is expected grow by 2.7 per cent in FY24/25 and 3.1 per cent in FY25/26. Meanwhile, in Sri Lanka, the government has made further progress with debt restructuring, and a projected rebound in investment and external demand is expected to lift growth in 2025 to 3.5 per cent before it returns to 3.1 per cent in 2026. 'Multiple shocks over the past decade have left South Asian countries with limited buffers to withstand an increasingly challenging global environment,' said Martin Raiser, World Bank vice president for South Asia . 'The region needs targeted reforms to strengthen economic resilience and unlock faster growth and job creation. Now is the time to open to trade, modernise agricultural sectors, and boost private sector dynamism.' A key component of strengthening economic resilience will be domestic revenue mobilisation. Although tax rates in South Asia are often above the average in developing economies, most tax revenues are lower. On average during 2019–23, government revenues in South Asia totalled 18 per cent of GDP—below the 24 per cent of GDP average for other developing economies. Revenue shortfalls are particularly pronounced for consumption taxes but are also sizable for corporate and personal income taxes, World Bank said in a press statement. Tax revenues in South Asia are estimated to be 1 to 7 ppts of GDP below their potential, based on existing tax rates. Some of this shortfall is explained by the widespread informality and large agricultural sectors in the region. However, even after taking this into account, sizable tax gaps remain, highlighting the need for improved tax policy and administration. 'Low revenues are at the root of South Asia's fiscal fragility and could threaten macroeconomic stability, especially in times of elevated uncertainty,' said Franziska Ohnsorge, World Bank chief economist for South Asia. 'South Asian tax rates are relatively high, but collection is weak, leaving those who pay taxes with high burdens and governments with insufficient funds to improve basic services.' The report recommended a range of policies to improve tax revenues by eliminating loopholes, streamlining tax codes, tightening enforcement, and facilitating tax compliance. This includes paring back tax exemptions; simplifying and unifying the tax regime to reduce incentives to operate in the informal sector; and using digital technology to identify taxpayers and facilitate collection. The report noted the potential of adopting pollution pricing, which could help address the high levels of air and water pollution while raising government revenues. Fibre2Fashion News Desk (SG)
Express Tribune
24-04-2025
- Business
- Express Tribune
Bangladesh signs $850m deals with World Bank to boost trade, jobs
Bangladesh has signed two financing agreements worth $850 million with the World Bank to upgrade its port infrastructure and strengthen its social safety nets, the global lender announced on Wednesday. The World Bank will provide $850 million in total financing to Bangladesh through two separate agreements aimed at expanding the country's trade capabilities and supporting vulnerable communities. The larger portion, $650 million, will fund the Bay Terminal Marine Infrastructure Development Project in Chittagong. The project includes building a 6-kilometre breakwater and access channels to allow larger ships at the port, a move expected to cut shipping costs, reduce turnaround times, and improve export performance. Government estimates suggest the terminal could save the national economy around $1 million daily. Once operational, it is projected to handle 36% of Bangladesh's container traffic and serve over one million people by improving access to trade and transport networks. The VP of South Asia for World Bank Martin Raiser announced the development on his X (formerly Twitter) page. Today we signed 2 agreements with #Bangladesh for projects totaling $850 million that will help create jobs, boost trade and modernize social protection for millions of #Bangladesh citizens. — Martin Raiser (@MartinRaiser) April 24, 2025 The project also aims to promote gender inclusivity by encouraging women's participation in port operations and facilitating opportunities for women-led businesses. 'To remain on a sustainable growth path, Bangladesh must create quality jobs for its population, particularly for the nearly 2 million youth who enter the labour market every year,' said Gayle Martin, the World Bank's interim country director for Bangladesh. The second agreement, worth $200 million, will support the Strengthening Social Protection for Improved Resilience, Inclusion, and Targeting project. It aims to assist 4.5 million vulnerable people, including youth, women, persons with disabilities, and workers in climate-affected regions. This initiative will establish a national registry to enhance service delivery and provide access to cash support, skills training, micro-credit, and mentoring to promote entrepreneurship. The financing is provided by the World Bank's International Development Association (IDA), which has contributed more than $45 billion to Bangladesh since 1971.
Indian Express
23-04-2025
- Business
- Indian Express
Global weakness, policy uncertainty: Why World Bank slashed India's growth forecast to 6.3% for FY26
The World Bank has cut India's growth forecast by 0.4 percentage points to 6.3 per cent from 6.7 per cent for the current financial year 2025-26, citing global economic weakness and policy uncertainty. It is seen slowing from 6.5 per cent growth estimate (7.0 per cent earlier) in FY25, the Bank said in its latest South Asia Development Update on Wednesday. 'In India, growth is expected to slow from 6.5 per cent in FY25 to 6.3 per cent as in FY26 as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty,' the World Bank said. The downgrade in India's growth projections by the Bank comes just a day after the International Monetary Fund (IMF) also cut the growth forecast for India. The IMF had lowered India's growth estimate by 0.3 percentage points to 6.2 per cent from 6.5 per cent for FY26 and by 0.2 percentage points to 6.3 per cent from 6.1 per cent for FY27. The estimates are lower than the 6.5 per cent growth projection by the Reserve Bank of India (RBI) for FY26. As per the RBI, the real GDP growth for India for FY26 is seen to be lower than the earlier projection of 6.7 per cent, with Q1 growth seen at 6.5 per cent; Q2 at 6.7 per cent; Q3 at 6.6 per cent; and Q4 at 6.3 per cent. 'Multiple shocks over the past decade have left South Asian countries with limited buffers to withstand an increasingly challenging global environment,' said Martin Raiser, World Bank vice-president for South Asia. 'The region needs targeted reforms to address vulnerabilities such as fragile fiscal positions, backward agricultural sectors, and the impact of climate-related shocks.' Exports may trip on global policy shifts Growth was affected in the previous financial year 2024-25 due to slower pace of private investment and public capital expenditure falling short of targets set by the government, the Bank said. The government has announced fiscal consolidation but also tax cuts to support private consumption and regulatory streamlining to spur private investment, it said. However, the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty, it said. 'Private consumption is expected to benefit from tax cuts, and the improving implementation of public investment plans should boost government investment, but export demand will be constrained by shifts in trade policy and slowing global growth,' the Bank said. The World Bank also made a mention of the rapid rise in India's equity markets in recent years, in terms of both listings and valuations, that has attracted significant, although volatile, net inflows. Noting that India's number of initial public offerings (IPOs) was second only to the US in the value of new listings in 2024, Bank said the equity correction could dampen consumption. 'Equity derivatives markets have grown particularly quickly, prompting interventions from regulators concerned about investor protection. Since peaking late last year, however, stock market valuations have undergone a correction. For now, this has not had broader ripple effects, but the decline in equity prices could dampen private consumption or investment over the medium term,' it said. How India's neighbours are likely to perform Commenting on the debt position in South Asia, the Bank said governments in India, Maldives, Pakistan, and Sri Lanka are already liable for above-average net interest payments relative to GDP, and will seek to finance fiscal deficits of between 7-17 per cent of GDP in 2025. 'In some countries, growing debt service pressures could generate cycles of rising risk premia and debt distress,' it said. Overall, growth in South Asia is expected to soften to 5.8 per cent in 2025, 0.4 percentage point below October forecasts before rising to 6.1 per cent in 2026. The region's economies face heightened downside risks, including from a highly uncertain global landscape, it said. Growth is projected to be slower for India's neighbours such as Bangladesh, where the growth is seen slowing to 3.3 per cent in FY25 amid political uncertainty and persistent financial challenges, and then a pickup to 4.9 per cent in FY26. In Bhutan, the growth forecast for FY25 has been downgraded to 6.6 per cent due to weak agriculture sector growth but upgraded in FY26 to 7.6 per cent due to expected strength in hydropower construction. Pakistan's economy is expected to grow by 2.7 per cent in FY25 and 3.1 per cent in FY26. In Sri Lanka, the government has made further progress with debt restructuring, and a projected rebound in investment and external demand is expected to lift growth in 2025 to 3.5 per cent, after which it is seen moderating to 3.1 per cent in 2026, the Bank said.
