IMF projects 4pc GDP growth for Pakistan in 2022

ISLAMABAD: The International Monetary Fund (IMF) has projected GDP growth rate for Pakistan at four percent for 2022 against 3.9 percent in 2021. The IMF World Economic Outlook (WEO) report, "Recovery during a pandemic health concerns, supply disruptions, and price pressures", projected unemployment ratio for Pakistan at 4.8 percent for 2021 compared to five percent in 2021.

The Fund has projected 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 period of 2022 at 9.2 percent against 9.7 percent in 2021. The current account balance is projected at negative 3.1 percent for 2022 compared to 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 point lower for 2021 than in the July forecast.

IMF revises Pakistan's GDP growth projection upward to 3.9pc

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 market and developing economies.

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 manoeuvre, the report noted.

Copyright Business Recorder, 2021