South Asian economies are expected to grow by 5.8% this year, far better than the anaemic growth rates seen in the eurozone and the US recently.

2003 growth forecasts Bangladesh 5.3% India 6% Nepal 2.3% Pakistan 5.1% Sri Lanka 5% 2002 performance Bangladesh 4.4% India 4.3% Nepal -0.5% Pakistan 3.4% Sri Lanka 4%

The Bank attributed the strong performance to fair weather conditions and more political stability.

The region's dependence on farming makes it vulnerable to adverse weather conditions, which hurt India, Bangladesh and Nepal last year.

Pakistan is the country expected to show the most improvement over the previous year, thanks to an expansion in large-scale manufacturing, a revival in major crops and a strengthened services sector.

Nepal is also expected to return to positive growth after a sharp contraction at the end of last year.

But the bank also warned that prospects in Nepal and Sri Lanka remain very dependent on the security situations.

The peace process in Nepal broke down last month and the army is trying to overcome Maoist rebels.

There are still no official growth figures available for Afghanistan.