ISLAMABAD, Oct 12 (APP):The International Monetary Fund (IMF) Tuesday projected Pakistan’s real Gross Domestic Product (GDP) to grow by 4.0% in current fiscal year (2021-22).<\/p>\n
In its recent report “World Economic Outlook October 2021” released today, the IMF also endorsed the Pakistan’s provisional figures of GDP growth rate of 3.9% during the previous fiscal year 2020-21.<\/p>\n
The World Bank in its recent report last week however, projected 3.4% GDP growth for the year 2021-22 which was rejected by Pakistan in a statement released by the ministry of finance according to which the forecast was based on unrealistic assessment and that the GDP growth rate for fiscal year 2021-22 would go up close to 5%.<\/p>\n
According to the report, the unemployment rate in Pakistan would also decline from current 5.0% to 4.8% in the current fiscal year.
\nIn a recent report, the World Bank however projected Pakistan’s GDP growth rate at 3.5%.<\/p>\n
The report projected that the country’s inflation rate would ease from 8.9% during the year 2020-21 to 8.5% by end of current fiscal year 2021-22.<\/p>\n
The report said despite recent increases in headline inflation in both advanced and emerging market economies, long-term inflation expectations remained anchored.<\/p>\n
“Looking ahead, headline inflation is projected to peak in the final months of 2021 but is expected to return to pre-pandemic levels by mid-2022 for most economies,” the report said adding that given the recovery\u2019s uncharted nature, considerable uncertainty remains, and inflation could exceed forecasts for a variety of reasons.<\/p>\n
Clear communication, combined with appropriate monetary and fiscal policies, can help prevent \u201cinflation scares\u201d from unhinging inflation expectations.<\/p>\n
Further, the IMF reported that current account deficit of Pakistan which was recorded at 0.6% in the previous year, would increase to 3.1% in FY2021-22.<\/p>\n
The IMF reported that the global economic recovery continued amid a resurging pandemic that posed unique policy challenges. Gaps in expected recoveries across economy groups have widened since the July forecast, for instance between advanced economies and low-income developing countries.
\nMeanwhile, inflation has increased markedly in the United States and some emerging market economies.<\/p>\n
As restrictions are relaxed, demand has accelerated, but supply has been slower to respond. Although price pressures are expected to subside in most countries in 2022, inflation prospects are highly uncertain.<\/p>\n
These increases in inflation are occurring even as employment is below pre-pandemic levels in many economies, forcing difficult choices on policymakers.<\/p>\n
Strong policy effort at the multilateral level is needed on vaccine deployment, climate change, and international liquidity to strengthen global economic prospects, the report added.<\/p>\n
National policies to complement the multilateral effort will require much more tailoring to country-specific conditions and better targeting, as policy space constraints become more binding the longer the pandemic lasts, it added.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD, Oct 12 (APP):The International Monetary Fund (IMF) Tuesday projected Pakistan’s real Gross Domestic Product (GDP) to grow by 4.0% in current fiscal year (2021-22). In its recent report “World Economic Outlook October 2021” released today, the IMF also endorsed the Pakistan’s provisional figures of […]<\/p>\n
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