Pakistan’s economic outlook remains bleak, as the International Monetary Fund (IMF) has revised its real GDP growth rate projection for the country from 2% to 0.5% for the current fiscal year.
In its latest World Economic Outlook (WEO) report, the IMF has forecast a GDP growth rate of 3.5% for fiscal year 2024, down from its previous projection of 2%. The report of global lender predicts that inflation will be around 27.1% in FY23 and fall to 21.9% in FY24 in Pakistan.
The current account deficit (CAD) is forecast to be 2.3% in FY23 and 2.4% in FY24. Earlier, the World Bank (WB) and Asian Development Bank (ADB) also lowered their growth rate projections for the South Asian country.
The country’s economy is struggling to recover, with high inflation and many companies reducing operations due to the uncertain economic situation. Meanwhile, the IMF has lowered its outlook for the global economy, with global growth forecast to slow in both the short and medium terms.
Last week, the Managing Director of the International Monetary Fund (IMF) warned that a global growth rate of below three percent is expected due to a continued slowdown in almost all of the world’s advanced economies.
Kristalina Georgieva, speaking ahead of the IMF and World Bank’s spring meetings, cited rising geopolitical tensions and persistently high inflation as factors that contribute to an elusive robust recovery.
