In 2023, the gross domestic product of Pakistan is projected to expand by 2%, while the World Bank predicts that the world economy would experience a severe and protracted decline, with growth estimated to be 1.7%.
WASHINGTON:
According to the World Bank’s most recent report, Pakistan’s real Gross Domestic Product (GDP) is expected to grow by 2.0% in the fiscal year 2022–2023 (FY23), while the world economy is predicted to slow in 2023 and come “perilously close” to a recession due to high inflation, rising interest rates, and Russia’s invasion of Ukraine.
According to the World Bank’s most recent Global Economic Prospects report, the prognosis indicates a “sharp, long-lasting decline,” with growth estimated at 1.7%, or almost half the rate it expected in June. Only the pandemic-induced recession of 2020 and the global financial crisis in 2009 are weaker rates recorded in over three decades.
According to the “Global Economic Prospects-January 2023” report from the World Bank, which was published on Tuesday, Pakistan’s real GDP was growing at half the rate that was predicted in June.
The research said that devastating flooding last August, which claimed many lives, added to Pakistan’s already vulnerable economic situation, which included low foreign exchange reserves and significant fiscal and current account deficits.
According to the report, Pakistan’s economy is struggling as a result of recent flooding as well as ongoing policy and political uncertainties.
Growth in advanced economies like the US is anticipated to decline to 0.5% in 2023, which is 1.9 points less than what was predicted in June. While dealing with major energy supply disruptions and price increases brought on by Russia’s invasion, the euro area is predicted to stagnate. This year, China is expected to grow by 4.3%, which is a 0.9-point decline from the previous prediction.
President of the World Bank David Malpass cautioned that “emerging and developing countries are facing a multi-year era of lacklustre growth driven by huge debt burdens and insufficient investment.”
