Pakistan GDP to grow at 4.2 pct: Fitch
Published 21 Sep,2021 via Dawn ISLAMABAD - With some subdued downward risks, Fitch Ratings on Monday forecast Pakistan’s economic growth at 4.2 per cent — against the government’s target of 4.8pc — in the current fiscal year (FY22) owing to supportive monetary and fiscal conditions and improving vaccination rates.
The New York-based agency — one of the three major global rating agencies — noted that net exports would contribute negatively to headline growth as imports would outpace export growth. “Improving vaccination rates will buoy private consumption growth while supportive monetary and fiscal conditions will serve as tailwinds for gross fixed capital formation,” it said.
The rating agency said the risk to the growth outlook was weighted to the downside. On the domestic front, given the more virulent delta strain in the community, amid a still low percentage of the population that are fully vaccinated, a strong resurgence in Covid-19 infections could weigh heavily on growth.
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