World Bank Report projects much slowing growth rates for Pakistan in coming years
*ISLAMABAD - Pakistan’s economic growth will decelerate or slow to 3.4% in the 2019 financial year and 2.7% in the 2020 financial year.*
The World Bank released a report in which it said this was the result of fiscal and monetary policies being tightened to address macroeconomic imbalances.
Domestic demand is expected to contract while at the same time export growth will be gradual, stated the report, adding that the agriculture and industrial sectors will grow less in these fiscal years.
Growth is expected to recover to 4% in the 2021 fiscal year as structural reforms take effect and macroeconomic conditions improve.
Remittances flows are likely to support the current account balance next year, according to the report. A more stable external environment will also support a pickup in economic activity starting from 2021.