ADB sees inflation easing owing to monetary tightening
The Asian Development Bank (ADB) on Wednesday said Pakistan’s overall recovery was still constrained by moderate confidence and high inflation was eroding the purchasing power of its population. In its December 2023 ‘Asian Development Outlook’, the Manila-based lending agency expected Pakistan’s inflation rate to ease from an average of 28.5pc in July-October, owing to fiscal consolidation and monetary tightening, as well as the improved availability of food and key imported inputs. For the developing economies in the Asia-Pacific region, the ADB raised its economic forecast to 4.9pc this year compared to its previous 4.7pc estimate in September as robust domestic demand drove higher-than-expected growth in China and India. The outlook for next year has been kept unchanged at 4.8pc. The ADB projected the Chinese economy to expand by 5.2pc this year, better than the previous forecast of 4.9pc, after household consumption and public investment boosted growth in the third quarter. Likewise, the growth outlook for India has been raised to 6.7pc from 6.3pc following faster-than-expected expansion in July-September, driven by double-digit growth in the industry.