<h1>International lender raises 2025-26 growth forecast to 6.5% for large South Asian economy despite new 50% export tariffs</h1> An international financial institution raised its growth projection for a large South Asian economy to 6.5% for 2025-26, citing resilient consumption, stronger-than-expected agricultural output and rural wages, and tax-reform-driven improvements in activity; it trimmed forecasts to 6.5% for 2026-27 and 6.3% for 2027-28. The institution warned that newly imposed 50% tariffs by a major trading partner on roughly three-quarters of the country's goods exports are expected to weigh on next-year growth and contributed to the downgrade, while regional growth is projected to decelerate but remain above most EMDE peers.