MANILA, July 21(ABC): The Asian Development Bank (ADB) projected Pakistan’s economic growth to “recover slightly” in the fiscal year 2022-23, while slashing its 2022 growth forecast to develop Asia.
“Growth is projected to recover slightly in FY2023, supported by structural reforms,” the institution said in a report, titled: “Asian Development Outlook (ADO) 2022 Supplement: Recovery Faces Diverse Challenges”.
For FY2022 (fiscal year ended June 30, 2022), the ADB said the gross domestic product (GDP) growth in Pakistan is expected to moderate on fiscal tightening measures to manage growing demand pressures and contain external and fiscal imbalances.
Moreover, the bank slashed its 2022 growth forecast to develop Asia and warned economic conditions could worsen, as the war in Ukraine and supply chain disruptions drive up prices.
While the impact of COVID-19 had eased, the region was now grappling with the fallout from Russia’s invasion of Ukraine, lockdowns in China and aggressive interest rate hikes, the Philippines-based bank said.
To reflect the deterioration across developing Asia — which stretches from the Cook Islands in the Pacific to Kazakhstan in Central Asia — the bank cut its 2022 growth forecast to 4.6%.
That compares with its previous prediction in April of 5.2% and the 6.9% growth chalked up last year.