The International Monetary Fund (IMF) has shared its latest report on global economic growth, revising Pakistan’s GDP growth outlook for 2025. According to the update, Pakistan’s economy is now expected to grow by 3%, slightly lower than the previous forecast of 3.2% announced three months ago. Despite this adjustment, the IMF maintains a positive medium-term outlook, predicting a growth rate of 4% for Pakistan by 2026.
The change in projections comes as part of the IMF’s “World Economic Outlook Update,” which highlights the uncertainties and challenges shaping global economic trends. While the specific reasons for the revision were not mentioned, economic experts have attributed this to a combination of domestic challenges and global pressures.
Interestingly, this adjustment aligns closely with the Asian Development Bank’s (ADB) recent forecast, which also predicted a 3% growth rate for Pakistan in 2024-25. The ADB had earlier expected a lower figure of 2.8% but revised it upward, showing cautious optimism for Pakistan’s economic recovery in the coming years.
Globally, the IMF projects an average growth rate of 3.3% for 2025 and 2026, which is slightly below the historical global growth average of 3.7%. The global economy faces mixed outcomes, with strong performance in countries like the United States counterbalanced by slower growth in regions such as Europe and some developing economies.
Inflation, a key economic concern, is expected to ease globally, with rates projected to fall to 4.2% in 2025 and 3.5% in 2026. However, some regions are likely to experience persistent inflationary pressures. Energy prices are predicted to decrease by 2.6% in 2025, while non-fuel commodity prices might rise by 2.5%, driven by unfavorable weather conditions affecting production.
In terms of regional and major economies, the IMF reports stronger growth prospects for the United States, with a revised 2025 growth rate of 2.7% due to robust domestic demand. However, this figure is expected to slow to 2.1% in 2026. Meanwhile, the eurozone is facing more difficulties, with growth forecasted at 1% for 2025, reflecting weaker manufacturing performance and political uncertainties. The region could see a slight recovery, reaching 1.4% growth in 2026.
China’s growth outlook remains stable at 4.6% for 2025 and 4.5% for 2026. The IMF encourages China to increase domestic demand to support its economic momentum. India, on the other hand, stands out with consistent and strong growth, maintaining a forecasted GDP increase of 6.5% for both 2025 and 2026.
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