IMF Raises GDP Growth Rate Projection for Pakistan

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International Monetary Fund (IMF) has projected the GDP growth rate for Pakistan at 4 percent for 2022 against 3.9 percent in 2021.

The IMF World Economic Outlook (WEO) report “Recovery during pandemic health concerns, supply disruptions, and price pressures”, projected the unemployment ratio for Pakistan at 4.8 percent for 2021 compared to 5 percent in 2021.

The Fund has projected an inflation rate at 8.5 percent for 2022 against 8.9 percent in 2021. However, the report has projected consumer prices for the end of the period of 2022 at 9.2 percent against 9.7 percent in 2021. The current account balance is projected at a negative 3.1 percent for 2022 compared to a negative 0.6 percent for 2021.

The global economy is projected to grow 5.9 percent in 2021 and 4.9 percent in 2022, 0.1 percentage points lower for 2021 than in the July forecast. The downward revision for 2021 reflects a downgrade for advanced economies —in part due to supply disruptions — and for low-income developing countries, largely due to worsening pandemic dynamics. This is partially offset by stronger near-term prospects among some commodity-exporting emerging markets and developing economies.

The rapid spread of Delta and the threat of new variants have increased uncertainty about how quickly the pandemic can be overcome. Policy choices have become more difficult, with limited room to maneuver, the report noted.

Source: Pro Pakistani