International Monetary Fund has upgraded its global outlook for 2020 but warned of a “long, uneven and uncertain” recovery. Pakistan’s GDP expected to contract by 0.4 percent in 2020 and grow by 1% in 20201.
The IMF in its report said global economies performed stronger than expected during the second and third quarters. The IMF now believed that global output would be 4.4% during 2020 compared to early forecast of 5.2% percent. The final bill for the pandemic would be $28 trillion in lost output, IMF executive summery added.
The IMF says in its World Economic Outlook that the global economy is still in deep recession and the risk of a worse outcome than in its new forecast is “sizable”.
“We are projecting a somewhat less severe though still deep recession in 2020, relative to our June forecast,” the IMF’s chief economist, Gita Gopinath,
For Pakistan, the IMF in its outlook projected 0.4% GDP growth for the year 2020. The IMF said Pakistan’s GDP growth is expected to be 1% during the year 2021. Inflation forecast for 2029 10% and is 8.8% for 2021. The IMF projected current account balance at -2.5 percent for 2021 while -1.1 percent for 2020.
The IMF estimated that Pakistan’s GDP growth will reach to 5% by 2025.