Sunday, September 25, 2022

GDP growth is forecast to decelerate further to 3.9% in FY2019


Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]

Macroeconomic challenges continue.

Despite steps to tighten fiscal and monetary policies to rein in high and unsustainable twin deficits.

To meet its large financing needs government discussing program with the IMF

In addition arranging financial assistance and oil credit facilities from bilateral sources

Continued fiscal consolidation in FY2020 will keep growth subdued at 3.6% supply side is already showing signs of slowdown

Agriculture is expected to underperform.

Target of 3.8% growth target for FY2019 appear unachievable after water shortages.

Large-scale manufacturing reversed 6.6% growth in the first half of FY2018 to decline by 1.5% in the same period of FY2019  domestic demand contracted and rising world prices crimped demand for raw materials

Contraction hit all key categories, including a 0.2% decline in textiles domestic demand shrinks will keep growth in services subdued.

Reform package announced in January 2019 is expected to support agriculture
With exchange rate flexibility and declining imports, net exports are expected to contribute to growth.

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