IMF Projects Global Economic Slowdown for 2024 and 2025, Maintains Pakistan’s Growth Forecast amid Inflationary Pressures
Global Economic Slowdown effecting Big Economies
The International Monetary Fund predicts global economic slowdown. The IMF forecasts global growth to ease to 3.2% in 2024, with inflation expected to drop gradually. However, the IMF warns that regional and sectoral shifts, along with persistent inflationary pressures, could create challenges for emerging markets and oil-importing countries. While inflation in advanced economies is likely to reach central bank targets by 2025, emerging markets will take longer to stabilize. In the U.S., strong growth is expected to slow, while Europe lags behind due to manufacturing weaknesses. China and India are also projected to experience slower growth, while the Middle East, Central Asia, and Sub-Saharan Africa may see improvements by 2025.
IMF maintains Pakistan Economy Growth Rate
For Pakistan’s growth, the IMF has maintained a 3.5% forecast for the current fiscal year, consistent with earlier estimates. The country’s economy faces pressure from persistently high inflation and elevated interest rates, exacerbated by global commodity price increases and geopolitical tensions. Pakistan’s heavy debt servicing continues to strain its financial stability. The IMF advises central banks to avoid easing policies prematurely and calls for Pakistan to focus on fiscal consolidation, macro-structural reforms, and prudent use of foreign reserves to manage future economic challenges and currency volatithe lity in Paksitan Economy.
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