Pandemic hurts domestic demand and recession hits exports.

KARACHI -- ACCA's Q2 Global Economic Conditions Survey (GECS) published today, reflects the scale of the global recession now under way. Globally, employment indices plummeted to record lows in the latest survey, consistent with the most severe recession in decades.

Pakistan is heading for economic contraction this year as pandemic mitigation measures hurt domestic demand and global recession hits exports. There is also a massive hike in unemployment - the Employment Index stands at -86.95 compared to 57.14 in Q1 and confidence is at an all-time low in Q2 at -78.26 compared with -28.57 in Q1. But the inflation-prone region has seen a dramatic fall in inflationary pressures - inflation concerns index fell by 25 points to just 20 in the Q2 survey - the long run average is 51. It also transpires that public spending expenditure has lowered from -33.33 in Q2 from 20 in Q1.

Michael Taylor, ACCA's Chief Economist said: 'Confidence in South Asia fell further in Q2, possibly reflecting that the region was late to see the spread of COVID-19. Also, activity indicators also remain weak, despite a slight improvement in the orders balance and it is worth noting that it is the only region to do so.'...