IMF Predicts Decline in Inflation and Unemployment in Pakistan for FY 2024-25
The International Monetary Fund (IMF) has forecasted a decrease in inflation and unemployment in Pakistan for the current fiscal year, 2024-25, according to its World Economic Outlook 2024 report. The IMF projects that the average inflation rate in Pakistan will stand at 9.5% this year, while unemployment is expected to drop to 7.5%.
The report indicates that economic growth is likely to gain momentum gradually. Inflation, which exceeded 23% last year, will drop significantly, bringing stability to the economy. The annual inflation rate is expected to remain around 10.6%, compared to the target of 12%. Pakistan’s GDP growth for this fiscal year is projected to be 3.2%, with a further increase to 4% next year and a gradual rise to 4.5% by 2029.
Globally, the IMF anticipates economic growth of 3.2% in 2024. However, challenges such as regional conflicts, social tensions, and climate change risks could disrupt global supply chains and hinder efforts to reduce policy interest rates.
The report also notes that upcoming elections in various countries, including the U.S. presidential election, may introduce shifts in global economic policies, influencing market dynamics worldwide.
