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IMF projects Pakistan’s GDP to grow at 4pc in FY22

KARACHI: The International Monetary Fund (IMF) Tuesday projected Pakistan’s real Gross Domestic Product (GDP) to grow by 4.0 per cent in the current fiscal year 2021-22, according to a report.

In its World Economic Outlook, the IMF also endorsed Pakistan’s provisional figures of GDP growth rate of 3.9pc during the previous fiscal year 2020-21.

The World Bank in its recent report last week, however, projected 3.4% GDP growth for the year 2021-22 which was rejected by the ministry of finance.

According to the WB report, the unemployment rate in Pakistan would also decline from the current 5.0% to 4.8% in the current fiscal year.

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 the current fiscal year 2021-22.

World Economic Outlook

In its World Economic Outlook, The IMF trimmed its 2021 global growth forecast to 5.9% from the 6.0% forecast it made in July. It left a 2022 global growth forecast unchanged at 4.9%.

“This modest headline revision, however, masks large downgrades for some countries,” the IMF said in the report. “The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics. The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions.”

The report also warned of a dangerous divergence in economic prospects fueled by “the great vaccine divide,” with low-income countries, where 96% of the population remains unvaccinated, facing lower growth for longer periods, more poverty, and the prospect of de-anchored inflation expectations.

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