South Asia's regional GDP growth slowed to a decade low of 4.6% in 2013 due to both external and domestic challenges. Growth in India fell below 5% and Pakistan's growth averaged 3.5% since 2010. However, regional growth is projected to strengthen to 5.7% in 2014 and rise further to 6.7% by 2016, led by increases in domestic investment and external demand. Risks to the outlook include the ability of countries to sustain fiscal reforms and reduce inflation, as well as potential global economic issues.