Pakistan economy to grow by 5.5 percent by 2018, says World Bank forecast

The World Bank had forecasted that the Pakistan economy will grow by 5.2 percent for the financial year 2016-2017 (July 1, 2016 – June 30, 2017) and spike to 5.5 percent for the next year owing to the increased energy supply, increase in the private sector investments, improved security and other reasons.

According to the World Bank’s June 2017 Global Economic Prospects, the whole of the South Asian region will grow by 6.8 percentage points for the financial year 2017 and grow to 7.1 percent in the next financial year. The same report cites an increase in domestic demand and exports.

On a global scale, the World Bank report has predicted that the growth will rise to 2.7 percent in 2017 due to increase in trade and manufacturing, increase in market confidence, and stabilizing commodity prices. These factors have combined to ensure consistent growth in the world economy.

In the advanced economies, the growth will rise to 1.9 percent in 2017. This growth heavily contributes to the economy of the world given that the advanced economies trade with all other world economies.

The world’s seven largest emerging market economies, according to the World Bank report, will grow and exceed its long-term average growth rate in 2018 due to the recovering economic activities in these economies and their trading partners.

On a global scale, the report stated that investment and confidence could be dampened by uncertainty in the policies set by world economies. Among the risks that could plague the growth of the world economy are the likelihood of market turbulence triggered by various economies policies. Poverty reduction in weak and developing economies also pose a risk to the growth of the world economies.

The world’s seven largest emerging market economies, according to the World Bank report, will grow and exceed its long-term average growth rate in 2018 due to the recovering economic activities in these economies and their trading partners.

On a global scale, the report stated that investment and confidence could be dampened by uncertainty in the policies set by world economies. Among the risks that could plague the growth of the world economy are the likelihood of market turbulence triggered by various economies policies. Poverty reduction in weak and developing economies also pose a risk to the growth of the world economies. According to the World Bank Group President Jim Yong Kim, there is evident progress towards eradication of poverty and slow growth in the small economies of the world. If countries can capitalize on the growth being witnessed at the moment, growth is guaranteed.