SBP Expects GDP Growth of 1.5–2.5% in FY21 – RS News

SBP Expects GDP Growth of 1.5–2.5% in FY21

SBP Expects GDP Growth of 1.5–2.5% in FY21 – however, due to the second wave of coronavirus and other factors, the growth projections are at risk.

State Bank of Pakistan

According to the State Bank of Pakistan (SBP), Pakistan could expect GDP growth to stay within the range of 1.5–2.5% in FY21. The targeted GDP growth was 2.1%.

This growth is expected due to the steady performance of agriculture and the services sector.

However, due to the second wave of coronavirus and some other factors, these growth projections are at risk:

As a result, while a rebound in growth is expected in nearly all the regions in 2021, downside risks remain high,

Source

The SBP expected exports to stay in the range of $23.4–23.8 billion in FY21 – higher than the $22.5bn recorded in FY20.

The debt servicing relief of $2.7bn (equivalent to 1% of GDP) provided to Pakistan under the G-20’s Debt Servicing Suspension Initiative will help create expenditure space for Covid-19-related spending,

The SBP is expecting the inflation rate for FY21 to stay within the range of 7-9pc in FY21 against the target of 6.5%.

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