The World Bank has said in its annual World Economic Outlook report that due to floods and uncertain political situation, Pakistan's economic growth rate may decrease by two percent in fiscal year 2023.
According to Arab News, in a similar report in June 2021, the World Bank predicted that Pakistan's GDP growth rate could reach four percent during the fiscal year 2023.
In the latest 'Global Economic Outlook' report, the World Bank has reduced Pakistan's economic growth rate by two percent and has written that due to policy and political uncertainty and last year's worst floods, Islamabad has suffered many There are economic challenges.
According to the report of the Washington-based World Bank, the economies of South Asian countries will grow at a lower rate than before the corona epidemic.
The main reason for this is Pakistan's weak productivity, which will grow at a rate of two percent in fiscal year 2023, half of what was forecast in June last year, the report said.
The World Bank added that if Pakistan implements policy measures to stabilize the macroeconomic conditions, inflation in the country ends and the country takes reconstruction measures to deal with the disaster caused by floods, it Pakistan's GDP is expected to grow by 3.2% in the next financial year.
The World Bank has warned Pakistan and Sri Lanka to "tighten policies more rapidly" to achieve macroeconomic stability.
According to the World Bank, the global economy will come "dangerously close" to recession this year, due to slow growth in all major economies - the US, Europe and China.
The World Bank has almost halved its forecast for global growth this year to just 1.7 percent. Earlier this estimate was up to 3 percent.
If the forecast is correct, it would be the third weakest annual economic expansion in three decades. Only the global financial crisis of 2008 and the recession caused by the corona virus epidemic in 2020 have weakened the world's economies so far.
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