[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]In spite of a marginally improved global economic outlook, the International Monetary Fund (IMF) has downwardly revised Pakistan’s economic growth projection to two percent for the current fiscal year. This adjustment represents a decline from the previous estimate of 2.5 percent provided in October.
The IMF’s latest World Economic Outlook (WEO) report, released on Tuesday, also made a slight adjustment to the growth forecast for the next fiscal year, lowering it to 3.5 percent, a reduction of 0.1 percent.
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These revised estimates are a result of the IMF’s recent detailed quarterly review of Pakistan’s macroeconomic position conducted within the framework of the ongoing $3 billion Standby Arrangement (SBA), scheduled to conclude in March.
While the IMF’s growth projection is notably lower than the government’s 3.5 percent GDP growth target for the current year, it closely aligns with the State Bank of Pakistan’s forecast range of 2 percent to 3 percent, as announced in the recent monetary policy statement.
In its WEO report, the IMF adjusted the global growth rate for 2024 to 3.1 percent, reflecting an increase of 0.2 percent from its previous forecast of 2.9 percent. This adjustment is attributed to greater-than-expected resilience in the United States, China, and other major emerging market and developing economies.
However, despite this modest improvement, the IMF issued a cautionary note, highlighting that global growth for both 2024 and 2025 remains below the historical average. Several factors, including elevated central bank policy rates to combat inflation, reduced fiscal support amid high debt levels, and sluggish productivity growth, were identified as contributors to this overall trend.[/vc_column_text][/vc_column][/vc_row]
