International Monetary Fund forecasts 4pc GDP growth for Pakistan in 2022

Daniel Fowler
April 6, 2021

Should that happen, India would become the most rapidly expanding large economy in the world; the closest competitor, China, is projected to grow by 5.6 per cent.

The unemployment rate for this year is forecast at 9.4%, down from 10.3% projected last autumn.

"Global prospects remain highly uncertain one year into the pandemic. We also see a lot of merit in the proposals that are being made", she said.

More than one year since the onset of the pandemic, global financial stability risks are still contained through the measures that have been taken, which included the combination of progress in health care solutions and continued unprecedented policy accommodation, as according to the report. Even for the next fiscal, it has revised the projection upwards. In fact, India will be the only country that is estimated to register double-digit growth.

In a release, IMF Economic Counsellor and Research Department Director Gita Gopinath said a multi-speed global economic recovery could give rise to unexpected circumstances, which could put the recovery at risk.

The U.S. economy, the world's biggest, is now forecast to expand 6.4 per cent in 2021 - its fastest growth since 1984 - and 3.5 per cent in 2022.

The new United Kingdom forecast is for growth of 5.3% this year and 5.1% in 2022. For many frontier market economies, market access remains impaired, it said. "While China's economy had already returned to pre-pandemic GDP level in 2020, many other countries are not expected to do so until 2023", she added.

She noted that economies also continue to adapt to new ways of working despite reduced mobility, and large economies, particularly the United States, have rolled out additional fiscal support, both of which have helped improve the outlook.

The Fund's report further highlighted that the positive trend in the current account would continue and predicted that the current account balance would remain at 1.5 percent of the GDP.

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The wastewater "meets water-quality standards for marine waters", he said, with the exception of phosphorous and nitrogen levels. A significant leak at a large pond of wastewater threatened to flood roads and burst a system that stores polluted waters.

Global growth is expected to moderate to 3.3 per cent over the medium term, reflecting projected damage to supply potential and forces that predate the pandemic, including aging-related slower labour force growth in advanced economies and some emerging market economies.

China will contribute more than one-fifth of the total increase in the world's gross domestic product in the five years through 2026, according to Bloomberg calculations based on International Monetary Fund forecasts published Tuesday.

Global recovery from the pandemic is expected to be asynchronous and uneven among advanced, emerging and frontier market economies as well as within regions, economies, sectors and firms.

But it has moved more quickly than nearly all other countries with its coronavirus vaccination programme.

Much of the domestic economy and that of the world's economic recovery depends on the rollout of Covid-19 vaccines.

The organization now expects the global economy to grow by 6% this year, up from 5.5% forecast in January.

In 2021, consumer prices are expected to increase by 0.7%, compared to 0.8% projected in October.

The report says the cumulative losses in income per person over the period 2020 to 2022 are likely to be 20% for those countries, compared with a less severe but still large figure of 11% for the developed world.

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