The International Monetary Fund (IMF) has said that this year will be the toughest year for Pakistan’s economy while unemployment will increase further in the next two years.
According to latest reports on local media, the year would be the hardest not only for Pakistan but also for the world, after the World Bank and the Asian Development Bank, the International Monetary Fund (IMF) has also alarmed the Pakistani economy.
The IMF issued a report yesterday stating that this year 2020 will be the toughest year for the Pakistani economy; this year the economic growth rate will be negative 1.5 percent, next year. Improvements are expected, but growth is estimated at 2%.
According to the IMF, inflation is expected to remain at the 11 per cent level, which will drop to a single digit of 8 percent next year. According to the report, unemployment in Pakistan is expected to rise steadily for the next two years, while this year unemployment will reach 4.5% and next year it will reach 5.1%.
According to the report, Pakistan’s current account deficit will be 1.7 percent this year and 4.2 percent next year. Countries would have benefited directly, the current account deficit would create more problems for the economy as a whole affecting production, imports, exports, unemployment, and government policies.
The IMF report also states that the Coronavirus will cause the global economy to lose more than $9 trillion in two years, a loss that is higher than the overall economies of Germany and Japan, the global economic growth rate this year would be negative -3% but recovery is likely next year.