ISLAMABAD, Aug 29 (Online): The Pakistan Economy Watch (PEW) on Monday said a recession in the US and EU will provide relief to the developing countries reeling under high oil and commodity prices.
The interest rates are being continuously increased in the US to reduce inflation, which is affecting economic activity, and will cause a recession, it said.
Recession in the US will shrink the global growth rate which will affect the exports of almost all the countries of the world, including Pakistan, while the remittances will also decrease, said Dr. Murtaza Mughal, President PEW.
On the other hand, the decreased demand will start the process of reduction in the price of almost everything including oil and agricultural commodities, he said.
Dr. Murtaza Mughal said that global economic contraction will be bad news for oil-exporting countries but good news for oil-importing countries like Pakistan.
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