Macroeconomic adjustments required to correct twin deficits: WB

Macroeconomic adjustments required to correct twin deficits: WB
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World Bank has said that immediate macroeconomic adjustments are required for Pakistan to correct the large twin deficits.

The Bank in its latest edition of the South Asia Economic Focus , Budget Crunch, finds that appropriate policy responses to correct these imbalances and increased buffers to absorb future shocks will reduce these risks and support a positive growth outlook.

Giving future outlook, the WB report said growth is expected to recover in FY-20 and reach 5.2 percent as macroeconomic conditions improve.

Similarly, inflation is expected to rise to 8 percent in FY-2019 and remain high in FY-2020, driven by exchange rate pass through to domestic prices and a moderate increase in international oil prices.

 

Pakistan