Signs of Pakistan's economic stability emerging in FY20: ADB.


ISLAMABAD -- The Asian Development Bank (ADB) has forecasted Pakistan's economic growth rate to stabilise this fiscal year FY2020. The ADB has released its Asian Development Outlook 2019 Update, and it observed that 'Despite tight monetary policy and a modestly strengthening currency, inflation in Pakistan averaged 10.1% in the first 3 months of FY2020.' 'Following a steep growth slowdown in Pakistan to 3.3% in FY2019 (ended 30 June 2019), signs of economic stabilisation are emerging in FY2020, as forecast in the Update,' it considered. Overall for Asia, this Supplement projects growth in developing Asia at 5.2% in both 2019 and 2020, with forecasts revised down for both years from Asian Development Outlook 2019 Update as a challenging global environment weighs on regional growth. Excluding newly industrialized economies,

regional growth forecasts are revised down to 5.7% for both 2019 and 2020. 'Growth forecasts for East Asia are downgraded to 5.4% in 2019 and 5.2% in 2020 as the People's Republic of China and the Republic of Korea endure continuing trade tensions and slowing domestic investment - as does Hong Kong, China, where political unrest is another factor.' 'Growth projections for South Asia are lowered to 5.1% in 2019 and 6.1% in 2020. Growth in India is expected to slow to 5.1% in 2019 as the foundering of a major nonbanking financial company in 2018 led to a rise in risk aversion in the financial sector and a credit crunch.

Also, consumption was affected by slow job growth and rural distress aggravated by poor harvest. Policy support will help growth recover to 6.5% in 2020.' 'Southeast Asia's growth forecast is revised down slightly to 4.4% for 2019, as economic weakening in Singapore and Thailand...

To continue reading