IMF releases World Economic Outlook report; forecasts decline in economic growth of Pakistan

International Monetary Fund (IMF) released the World Economic Outlook.

The global money lender, International Monetary Fund (IMF) released the World Economic Outlook report on Tuesday which predicted that the economic growth of Pakistan would remain in red zone. According to the report, the economic growth would drop to 0.5 per cent. It also highlighted the inflation in the country over the next two years; projecting it over 20 per cent. Hence the struggle to survive would get harder for a common man of the country.

Inflation Rate and Current Account Deficit (CAD)

The IMF, in the World Economic Outlook report, has forecasted that the inflation rate during the current fiscal year would cross 27 per cent. The rate is over around eight per cent as at the time of 8th review IMF predicted the inflation rate at 19.9 per cent. Regarding the current account deficit (CAD), the report stated that it would remain at 2.3 per cent of the GDP. 

Last week the report by the Asian Development Bank and World Bank stated similar growth prospects for Pakistan. The World Bank claimed a growth of 0.4 per cent and the Asian Bank believed that overall economic growth would touch 0.6 per cent. Similarly, both organisations kept the inflation rate between 27.5 per cent and 29.5 per cent.

Unemployment Rate

The World Economic Outlook report did not give encouraging numbers related to the unemployment rate in Pakistan. During the fiscal year 2024, the unemployment rate would rise from 6.2 per cent to 7 per cent.

The report has suggested that by fiscal year 2024, the economic growth would get better and reach 3.5 per cent. But the inflation rate would touch 22 per cent and the unemployment rate to drop slightly at 6.8 per cent.

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