Due to the rising rate of inflation and unemployment in Pakistan, the International Monetary Fund (IMF) has projected a subdued economic growth rate of 1.5 per cent in the country, during the current fiscal year.

As per details, the 1.5 per cent forecast by the international organization is in direct contrast with revised 3 per cent GDP growth forecast made by the State Bank of Pakistan a few days ago. The estimations given by IMF are in line with those of World Bank, which has projected growth at 1.3 per cent for current year.

The Washington-based lending agency in its World Economic Outlook (WEO) 2021 report, has projected 8.7 per cent average rate of inflation, current account deficit at 1.5 per cent of GDP and unemployment rising by 0.5 per cent to 5 per cent during current fiscal year.

This numbers are in sharp contrast from the numbers projected by the government of Pakistan for the current year, which project GDP growth at 2.1 per cent, rate of inflation at 6.5 per cent and 1.6 per cent for current account deficit.

Meanwhile, for the next year that is FY2022, the IMF has projected economic growth rate recovering to 4 per cent of GDP, and 5pc by 2026. The organization said that the rate of inflation would also reduce from 10.2 per cent last year to 8 per cent year on year and 10 per cent on average by FY2022.

It estimates current account deficit rising from 1.1 per cent of GDP in FY2020 to 1.5 per cent in FY2021 and then going up to 1.8 per cent of GDP in FY2022 and peak at 2.9 per cent of GDP by 2026.

 

These numbers are different compared to the 3 per cent GDP growth estimate of Pakistan’s central bank.

For advanced economies, the IMF estimates 5.1 per cent growth during 2021, which also include 6.4 per cent for the euro area, 3.3 per cent for Japan and 5.3 per cent for UK. The growth prospects for emerging market and developing economies are put at 6.7 per cent led by 12.5 per cent for India and 8.4 per cent for China.

From : pk.mashable.com

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