In its World Economic Outlook released on Tuesday, the International Monetary Fund (IMF) maintained a steady growth forecast for Indonesia and Pakistan in 2023. The IMF's projections underscore the economic resilience of these nations amidst a challenging global economic landscape.
Indonesia's growth forecast for 2023 remains robust at 5 percent, matching that of China, according to the IMF report. This prediction puts Indonesia alongside India as the only emerging Asian economies not facing downgraded forecasts. The IMF report, which offers comprehensive insights into global economic trends, is available through a subscription model.
Meanwhile, the IMF projects that Pakistan's economy will grow by 2.5 percent this year and 5 percent in 2023. These estimates surpass those from the World Bank and Asian Development Bank (ADB), despite a 0.5 percent economic contraction last year. The prediction ties in with the ongoing $3 billion nine-month bailout program between the IMF and Pakistan. As part of this larger financing arrangement, a disbursement of $1.2 billion was made in July.
However, the IMF also estimated an inflation rate of 23.5 percent for this fiscal year for Pakistan, increasing to 29.2 percent in fiscal 2023 but potentially dropping as low as 17.5 percent by year-end. The unemployment rate is expected to rise from 8 percent this year to 8.5 percent in fiscal 2023, higher than the World Bank's forecast.
An IMF delegation is scheduled to review Pakistan's economic performance later in October. This review will assess the effectiveness of the bailout program and provide insights into potential future economic strategies.
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