IMF predicts Pakistan’s GDP to grow by 1pc in FY21

The International Monetary Fund (IMF) in its World Economic Outlook report “A long and difficult Ascent,” released on Tuesday projected Pakistan’s gross domestic product (GDP) growth rate at 1 per cent for FY21 against -0.4pc in FY20.

The IMF further expects the country’s inflation rate to be around 8.8pc in FY21 against 10.7pc in FY20. The current account balance is projected at negative 2.5pc as opposed to negative 1.1pc in FY20.

“The unemployment rate is expected to accelerate to 5.1pc in FY21 compared to 4.5pc in FY20,” the report stated.

Further, the report also highlighted that remittance flows contracted sharply during the early lockdown period but have shown signs of recovery.

Article continues after this advertisement

Nonetheless, the risk of a decline in payments and transfers from migrant workers back to their home countries is very significant, particularly for such countries as Bangladesh, Egypt, Guatemala, Pakistan, the Philippines, and those in sub-Saharan Africa more broadly, it added.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Must Read

Tech sector continues to thrive, prosper: WIPO report

Despite the economic devastation wrought by Covid-19, the new technology sector continued to thrive and prosper last year, the UN’s World Intellectual Property Organisation’s...