The International Monetary Fund (IMF) has released its latest report, forecasting a positive outlook for Pakistan’s economic indicators in FY24. It anticipates a notable improvement in Pakistan’s GDP growth rate, projecting it to be 2.5%, a significant recovery from the -0.5% projected for 2023.
Furthermore, the report indicates expectations of a -1.8% current account balance in 2024, compared to -0.7% in 2023. Unemployment is also predicted to decrease to 8% in 2024, down from 8.5% in 2023.
Inflation is expected to decline to 23.6% in 2024, a reduction from the 29.2% recorded in 2023. The IMF’s projection for Pakistan’s general government net lending/borrowing stands at -7.6% for 2024, an improvement from -8.1% in 2023.
The IMF report acknowledges the State Bank of Pakistan’s improved communication strategies, particularly in announcing preset monetary policy meeting calendars.
On a global scale, the IMF predicts a slowdown in economic growth, from 3.5% in 2022 to 3.0% in 2023 and 2.9% in 2024. Advanced economies are expected to experience a slowdown, with stronger growth in the US but weaker growth in the euro area. Emerging markets and developing economies are also projected to have a modest decline in growth due to factors like the real estate crisis in China, dropping from 4.1% in 2022 to 4.0% in 2023 and 2024.
