Pakistan economic crises set to deepen as IMF downgrades growth rate to 2%

Islamabad: Even as the Pakistan economy struggles to keep afloat amidst a severe financial crisis, the International Monetary Fund (IMF) projected a slowdown in the country’s Gross Domestic Product (GDP) from 3.5% to 2% for the current fiscal period. According to a report in ‘The News International’, the IMF had also predicted that the GDP growth rate of Pakistan would rebound in the next fiscal 2023-24 and may rise to 4.4%. The World Economic Outlook (WEO), which was released by the IMF earlier this week, has said that the growth of the global economy is projected to decline from an estimated 3.4% in 2022 to 2.9% this year. It has then been predicted to improve to 3.1% in 2024. Central banks around the world had increased rates in order to combat inflation even as the war between Russia and Ukraine continue to hamper global economic activity. According to a report by news agency ANI, the rapid spread of the Covid-19 pandemic in China had dampened global economic growth in 2022, but the recent scrapping of the Zero Covid policy and reopening initiated by the Chinese government has paved the way for a faster-than-expected rebound. Global inflation has been projected to fall from 8.8% in 2022 to 6.6% this year and 4.3% in 2024, which is still the levels of about 3.5% that were prevalent before the coronavirus pandemic in 2017-19. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.