GDP Drop.
The fear of a global and national recession is still on the horizon as the World Bank has forecasted Pakistan's economic growth to shrink by a further two percent during 2023. The June 2022 estimate has been cut down due to the floods and global slowdown in growth. The bank's latest Global Economic Prospects report has projected global growth to be 1.7 percent as compared to 3 percent in June. This is attributed to inflation, higher interest rates, and global developments such as the Russia-Ukraine invasion. Likewise, Pakistan's economic output has declined and political uncertainty has accompanied this development. Having already mentioned the floods, they seem to be the most important variable in the issue with low foreign exchange reserves, fiscal deficits, and loss of human and social capital. Now, with the new year, production has halted in many industries and an unemployment crisis may be accompanied as layoffs are expected. Consumer price inflation had also reached 24.5 percent in December, at the highest rate since the 1970s. In December...
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