IMF projects ease in Pakistan inflation rate in current fiscal

The International Monetary Fund has predicted a decrease in the headline inflation in Pakistan during current fiscal year, reported 24NewsHD TV channel.

The IMF on Tuesday released the World Economic Report.

According to the report, the current account deficit would remain 1.8%. Last year, the current account deficit was 0.7%.

The IMF projected that the headline inflation in Pakistan would be eased and there would be a little decrease in the unemployment rate.

It is expected that the average inflation in the country will remain 23.6% this fiscal while the average inflation in the previous year was 29.2%.

In the current fiscal year, economic growth rate is expected to remain at 2.5%. While, during previous fiscal year, Pakistan's economic growth rate remained quite bleak which was recorded at negative 0.5%.

According to the IMF, this fiscal year, the unemployment rate in Pakistan is likely to decrease to 8%, down from the previous year’s rate of 8.5%.

The IMF says in report that the global economy continues to recover from the Covid-19 pandemic, Russia’s invasion of Ukraine and the cost-of-living crisis. In retrospect, the resilience has been remarkable.

According to the Fund’s latest projections, world economic growth will slow from 3.5 percent in 2022 to 3 percent this year and 2.9 percent next year, a 0.1 percentage point downgrade for 2024 from July. This remains well below the historical average.

Headline inflation continues to decelerate, from 9.2 percent in 2022 on a year-over-year basis, to 5.9 percent this year and 4.8 percent in 2024. Core inflation, which excludes food and energy prices, is also projected to decline, albeit more gradually, to 4.5 percent next year. Most countries aren’t likely to return inflation to target until 2025.

 

Reporter Waqas Azeem