ADB trims growth outlook amid lingering uncertainty

While the South Asian region will be growing at 5.4 per cent and maintaining single-digit inflation (at 6.6pc), the Asian Development Bank (ADB) forecasts Pakistan limping at 1.9pc growth rate and its population will continue reeling under elevated cost of living, reflected by a 25pc rate, during the current fiscal year. In its flagship Asian Development Outlook (ADO) released on Wednesday, the ADB lowered the growth rate and increased the inflation outlook for Pakistan. “Pakistan’s gross domestic product (GDP) growth is projected to recover modestly to 1.9pc (instead of 2pc it forecast in April) in 2023-24 from 0.3pc in FY23, with price pressures remaining elevated,” the ADB said while simultaneously warning that “significant downside risks to the outlook remain, including from global price shocks and slower global growth”. For the South Asian region, the Manila-based lending agency also revised marginally downward the growth rate to 5.4pc this year, instead of the earlier forecast of 5.5pc, and 6pc for next year instead of 6.1pc. The rate of inflation was put at 6.6pc this year. This outlook is driven by India — which accounts for 80pc of the South Asian economy