Growth rate to achieve average 5.9pc: World Bank

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Karachi (APP): Pakistan economic growth would reach at an average 5.9 percent a year over the medium term on the back of continued robust domestic consumption, rising investment, and a recovery in exports, The World Bank (WB) has predicted.

World Bank report stated that in Pakistan, growth is forecast to pick up to 5.5 percent in FY2017/18, and reach at an average 5.9 percent a year over the medium term on the back of continued robust domestic consumption, rising investment, and a recovery in exports.

The report says that growth continued to accelerate in FY2016-17 (July-June) to 5.3 percent, somewhat below the government’s target of 5.7 percent as industrial sector growth was slower than expected.

In its January 2018 Global Economic Prospects, the bank projected that Pakistan’s GDP growth rate will be 5.5 per cent and 5.8pc for 2017-18 and 2018-19, respectively.

Activity was strong in construction and services, and there was a recovery in agricultural production with a return of normal monsoon rains.

In the first half of FY2017-18, activity has continued to expand, driven by robust domestic demand supported by strong credit growth and investment projects related to the China-Pakistan Economic Corridor.

Meanwhile, the bank in its report has predicted that the growth in South Asian region would accelerate to 6.9 percent in 2018 from an estimated 6.5 percent in 2017.

Consumption is expected to stay strong, exports are anticipated to recover, and investment is on track to revive as a result of policy reforms and infrastructure upgrades.

Growth in advanced economies is expected to moderate slightly to 2.2 percent in 2018, as central banks gradually remove their post-crisis accommodation and as an upturn in investment levels off.

Growth in emerging market and developing economies as a whole is projected to strengthen to 4.5 percent in 2018, as activity in commodity exporters continues to recover.

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