The IMF has predicted a global economic slowdown in 2020 based on global trade disputes and economic uncertainty. The IMF has called on member states to resolve their disputes through dialogue rather than through tariffs. The global average economic growth is expected to be 3.2% in 2019 and 3.5% in 2020, according to the IMF’s Global Economic Outlook Global Forecast.
Readers! At present, trade disputes between the two major economic powers, the United States and China, have severely affected world trade and the global economy. The United States has announced an additional 10 percent customs duty on China’s 300 300 billion worth of electronics and other products from September 1, 2019, while China has indicated similar measures.
On that basis, the IMF has forecast US GDP growth of 2.6% in 2019 and 1.9% in 2020, while eurozone growth is expected to be 1.6% in 2019 and 1.3% in 2020.
The report indicates that China’s GDP growth will fall to 6.2 percent in 2019 and 6 percent in 2020, while global recession, Bridget and the United States, Iran, China, Japan, Brazil, Mexico, Russia, India and South Africa’s GDP Slowdown in DP growth is predicted. Emerging and developing economies are expected to see 4.1 percent GDP growth in 2019 and 4.7 percent in 2020, while Latin American economies are expected to grow 0.8 percent.
The IMF has called on the WTO to review its rules for new digital services and technology transfers and develop new rules to resolve such disputes on a global platform.
Recently, a five-member delegation of the Federation led by me in China participated in the China International Fair and Investment Forum organized by CCIIP in Xiamen, China from September 7 to 10.
Former Egyptian Prime Minister Prof. Dr. Issam Abdulaziz Sharaf, former German Defense Minister Rod Wolf Albert Scarping, former US Secretary of Commerce Carlos Gutierrez and Deputy Prime Minister of Serbia Rasim Lajk were also present at the forum.
I said in the panel discussion that the world economy is facing serious challenges due to global economic uncertainty, including Britain’s withdrawal from the European Union, falling oil prices, currency volatility, trade between the United States and China. Wars are involved and the world’s major economies must end trade disputes and end the uncertainty.
The World Bank has expressed concern over Pakistan’s worsening economic situation and predicted slower growth in the industrial and agricultural sectors. The World Bank has hinted that if Pakistan implements economic reforms, Pakistan’s growth rate could improve to 4% in 2021.
The World Bank Country Director for Pakistan, Alango Pachautho, has said that imports have increased in South Asia over the last two years.
Due to Pakistan’s low economic growth and unsatisfactory economic performance of international organizations, foreign investment is not coming to the country. The Pakistan Stock Exchange is in a deep slump due to the uncertain value of the rupee.
According to an SBP report, government debt in the first nine months of the current financial year has exceeded that of the previous 12 months, while foreign debt has reached 99 99 billion.
Revolving loans and loss-making government agencies Steel Mills, WAPDA, Railways, and PIA are a constant burden on the national exchequer. From July to March of the current financial year, the government borrowed Rs 303 billion from banks for these institutions, which is 81 percent more than last year.
Readers! The disappointing report of the international organizations on the national economy is certainly a matter of concern.
The real estate business is stagnant. Due to the FBR’s new valuation table and documentation of the economy, investors in the sector can no longer use their undisclosed money in real estate business, which has led to the sector and its 40 affiliates. The sectors are also in recession.
FBR’s revenue collection target has fallen due to the economic slowdown. According to the IMF report, growth in the Middle East, North Africa, Afghanistan, and Pakistan Region (MENAP) could reach 1.5% in 2019 and 3.2% in 2020. On Pakistan, IMF Managing Director Christine Lagarde has forecast Pakistan’s growth of 2.9 percent in 2019 and 2.8 percent in 2020.
According to him, if Pakistan does not make effective reforms in this period, our growth could fall to 2.5% by 2024.
I told the Governor SBP and the Presidents of the banks in my recent meeting at the Federation House that the SBP’s policy rate is 13.25 percent and the lending rates of the banks have gone up from 16 to 17 percent on which no new industry can be set up. Over time, investing in new industries will be difficult, which will not create new jobs and increase unemployment and poverty in the country.
Forecasts from the IMF, the World Bank, and the Asian Development Bank also indicate that Pakistan’s economy will be under severe pressure in the next two years, so the government should implement effective economic reforms to boost Pakistan’s GDP. Include growth countries.Follow us on social media