Report says world economy will grow 3.5 per cent in 2015, down from 3.8 per cent pace projected in October
The International Monetary Fund (IMF) on Tuesday issued the economic growth forecast of Pakistan, Middle East, North Africa and Afghanistan to be 3.3 per cent in 2015 and 3.9 per cent in 2016 as a part of its update to the World Economic Outlook report.
The IMF made the steepest cut to its global-growth outlook in three years, with diminished expectations almost everywhere except the US more than offsetting the boost to expansion from lower oil prices.
The world economy will grow 3.5 per cent in 2015, down from the 3.8 per cent pace projected in October, the International Monetary Fund said in its quarterly global outlook released late Monday in Washington. The Washington-based lender also cut its estimate for growth next year to 3.7 per cent, compared with 4 per cent in October.
On January 4, the IMF had projected Pakistan’s economic growth to accelerate to about 3.7% over the next fiscal year, and to rise further in the medium-term as fiscal adjustment eases and structural reforms alleviate constrains in the energy sector.
In July 2014, the government reported the actual growth rate to be 3.3 per cent, while IMF projected the economic activity to pick up in 2014–15 with the recovery expected to remain fragile.
The IMF’s report further said that the growth was strengthening in Pakistan although large fiscal and external vulnerabilities remained.
Also, according to a report published by Department of Economic and Social Affairs (DESA) of the United Nations (UN), South Asian economies in general are expected to grow by 5.4% in 2015, however, Pakistan’s economy is expected to fall during 2015.