World Bank report predicts Pakistan economic growth decelerate to 3.7%
LAHORE: World Bank in a semi-annual report released on Tuesday projected Pakistan’s economic growth will decelerate to 3.7% in the current financial year 2018-19 with financial conditions tightening to help counter rising inflation and external vulnerabilities from a thirteen-year high of 5.8% in FY17-18.
The Washington-based lender stated macroeconomic imbalance are weighing on Pakistan’s growth outlook and it is expected to face financing needs due to large twin deficits (current account and trade deficit) combined with low international reserves.
And activity is projected to rebound and average 4.6 percent over the medium term with support from stabilizing macroeconomic conditions, said the report.
During FY17-18, the World Bank estimated that Pakistan’s economy grew at 5.8% with solid contributions from consumption and investment.
Moreover, activity was backed by the strengthening in the agricultural, industrial sectors and sustained acceleration in services.