World Bank has forecast that the country’s economy is expected to grow by 5.2% in fiscal 2017 (July 1, 2016 – June 30, 2017) and to 5.5% in the next fiscal year, reflecting an upturn in private investment, increased energy supply, and improved security.
Growth in the South Asia region is forecast to pick up to 6.8 percent in 2017 and accelerate to 7.1 percent in 2018, as part of a surge in domestic demand and exports.
The report said that regional growth is projected to remain strong. Growth is also expected to firm in 2018-19, reaching an average of 7.2%. These figures were mentioned as part of the World Bank’s report on ‘June 2017 Global Economic Prospects.’
The World Bank reports that economic growth worldwide is expected to strengthen to 2.7% in 2017 due to rise in manufacturing and trade, rising market confidence, and stabilizing commodity prices. These will also allow growth to resume in commodity-exporting emerging markets and developing economies.
According to the World Bank’s June 2017 Global Economic Prospects, in advanced economies, the growth is expected to accelerate to 1.9% in 2017, which will also benefit the trading partners of these countries. Global financing conditions remain favorable and commodity prices have stabilized. Against this improving international backdrop, growth in emerging market and developing economies as a whole will pick up to 4.1 percent this year from 3.5 percent in 2016.
Economic Growth in Pakistan
In Pakistan, agricultural output rebounded following the end of a drought, while the successful completion of an IMF-supported program enhanced macroeconomic conditions and foreign direct investment (FDI).
In Pakistan, favorable weather and increased cotton prices are supporting agricultural production, and the China-Pakistan Economic Corridor infrastructure project, as well as a stable macroeconomic environment, is contributing to an increase in private investment.
“After a prolonged slowdown, recent acceleration in activity in some of the largest emerging markets is a welcome development for growth in their regions and for the global economy,” said World Bank Development Economics Prospects Director Ayhan Kose. “Now is the time for emerging market and developing economies to assess their vulnerabilities and strengthen policy buffers against adverse shocks.”