ISLAMABAD: The World Bank has estimated 3.4 percent GDP growth in Pakistan for the current fiscal year. This growth rate is lower than the government’s target of at least 4.8 percent economic growth in the ongoing financial year.
The World Bank has given new estimate of economic growth in its latest Global Economic Prospects report 2022 released today.
The WB has anticipated a slowdown in economies of the advanced and developing nations after showing recoveries last year.
In its report, the Bank has kept unchanged growth rate (3.4pc) for Pakistan for fiscal year 2021-22, ending in June 2022.
Last week, the Prime Minister’s Economic Strategy Group had estimated a 4.5% economic growth rate for the current fiscal year. Nevertheless, the Pakistan Institute of Development Economics (PIDE) said the country needs to grow at an annual pace of 7% to 9% for a few decades to provide employment and business opportunities to young generation.
At present, more than 31% of the youth with degrees, including the professionally skilled ones, are unemployed with females at 51% and males at 16%.
Last week, the Pakistan Bureau of Statistics (PBS) reported 12.3% inflation rate for December 2021, which would trigger to 13 percent or above it after the implementation of the mini-budget.
Meanwhile, global economic growth is expected to slowdown from 5.5% in 2021 to 4.1% in 2022 and 3.2% in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world.
Also, growth in advanced economies is expected to decline from 5% in 2021 to 3.8% in 2022 and 2.3% in 2023 – a pace that, while moderating, will be sufficient to restore output and investment to their pre-pandemic trend in these economies.
According to the World Bank report, in emerging and developing economies, however, growth is expected to drop from 6.3% in 2021 to 4.6% in 2022 and 4.4% in 2023. By 2023, all advanced economies will have achieved a full recovery; yet output in emerging and developing economies will remain 4% below its pre-pandemic trend.