Pakistan’s economic development to slow down and unemployment to increase in 2019: IMF

Pakistan’s economic development to slow down and unemployment to increase in 2019: IMF

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The International Monetary Fund (IMF) fears that Pakistan’s economic conditions may get worse in 2019, which in turn would lead to an increase in unemployment and deceleration of economic development.

The IMF on Tuesday gave out its report called ‘World Economic Outlook 2019’, stating that economic development would slow down and unemployment would increase in Pakistan in 2019.

It also said that the projected GDP growth rate of the country would stay 2.9 percent this year, while it would be 2.8 percent the next year, as compared to 5.2 percent in 2018.

The IMF said that the expected budget deficit of the country is likely to be 7.2 percent, which may increase next year.

“Growth in the Middle East, North Africa, Afghanistan, and Pakistan region is expected to decline to 1.5 percent in 2019, before recovering to about 3.2 percent in 2020. The outlook for the region is weighed down by multiple factors, including slower oil GDP growth in Saudi Arabia; ongoing macroeconomic adjustment challenges in Pakistan; US sanctions in

Iran; and civil tensions and conflict across several other economies, including Iraq, Syria, and Yemen, where recovery from the collapse associated with the war is now expected to be slower than previously anticipated,” the report stated.

“The medium-term outlook for the Middle East, North Africa, Afghanistan, and Pakistan region is largely shaped by the outlook for fuel prices, needed adjustment to correct macroeconomic imbalances in certain economies, and geopolitical tensions,” it said.

“In Pakistan, in the absence of further adjustment policies, growth is projected to remain subdued at about 2.5 percent, with continued external and fiscal imbalances weighing on confidence.”

 

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