Daily Times

The International Monetary Fund (IMF) on Tuesday projected acceleration in Pakistan’s economic growth for fiscal year 2025 with real GDP growth of 3.5 percent, up 0.4 percentage points from its January estimate of 3.1pc.

In its latest World Economic Outlook (WEO) report released on Tuesday, the Washington-based global lender also projected reduction in inflation and unemployment in the country. The IMF forecast consumer price index (CPI) at 24.8pc and 12.7pc for the current and next fiscal year, respectively. The unemployment will rate may drop to 7.5 in the next fiscal year as compared to 2024 forecast of 8.0pc, the report stated.

Meanwhile, the international lender raised its outlook for the global economy this year, while maintaining a gloomy forecast over the medium term. The International Monetary Fund now expects the world economy to grow by 3.2 percent this year, up 0.1 percentage point from its previous forecast in January, and by a further 3.2 percent in 2025.

Global headline inflation is expected to ease from 5.9 percent this year to 4.5 percent in 2025, supported by elevated interest rates in many countries. “The global economy continues to display remarkable resilience, with growth holding steady and inflation declining,” IMF chief economist Pierre-Olivier Gourinchas told reporters on Tuesday. “But many challenges still lie ahead.” “Most indicators continue to point to a soft landing,” he said, referring to attempts by many central bankers to bring inflation down to target without fueling unemployment or hampering economic growth.