World Bank has forecast Pakistan’s growth at 2.0 percent in fiscal year 2022/23 amid warning that global economy is close to falling into recession.

The World Bank in its annual Global Economic Prospects report said the figure for Pakistan growth was half the pace that was anticipated last June, and faces challenging economic conditions.

It added that overall growth in South Asia is projected to slow to 5.5% in 2023 before picking up to 5.8% in 2024.

According to report, food insecurity is rising in South Asia which consumes about one-fifth of its calories from wheat products. It said although global food price inflation appears to have subsided, risks of increased deprivation and inadequate nutrition remain elevated.

It said climate change is a significant threat in the region. The recent floods in Pakistan are estimated to have caused damage equivalent to about 4.8 percent of GDP.

At the global level, forecasts for growth in 2023 were cut nearly in half, dropping from 3% to 1.7%.

The bank said major slowdowns in advanced economies could indicate a new global recession less than three years after the last one.

Source: Radio Pakistan