The International Monetary Fund (IMF) has recognized Pakistan’s improving economic activity and has maintained its world growth prediction of 6% this year and 4.9 percent next year.
Because of the widespread Delta variant and resulting in decreased economic activities, the IMF cut India’s current year growth prediction downward by three percentage points in its World Economic Outlook (WEO) update released on Tuesday.
The 0.5 percentage point increase for 2022 is largely due to an upgrade in the forecast for advanced economies, particularly the United States, which reflects the anticipated legislation of additional financial support in the second half of 2021 and improved health metrics more broadly across the group.
While the global economic recovery continues, the gap between advanced nations and many emerging markets and developing economies is widening, according to IMF Economic Counsellor and Director of the Research Department, Gita Gopinath.
Despite near-term supply disruptions, global trade volumes are expected to grow 9.7% in 2021, before slowing to 7% in 2022, according to the IMF. After initially focusing on pandemic-related purchases, consumer durables, and medical equipment, the merchandise trade recovery is expected to broaden. Services trade is projected to rebound more slowly, in accordance with the slowing of cross-border travel until the virus spreads to low levels worldwide.