Macroeconomic Forecast Pakistan

August 2005 | Macroeconomic Forecasts

Pakistan's current-account deficit will narrow this year after hitting record levels last year. We estimate that during the year to June 30 2005 (2004/05) the deficit widened to US$2.96bn, representing 2.7% of GDP at today's prices. Strong domestic demand, together with record-high oil prices, led to a near doubling of the trade deficit to US$6.21bn. Though oil prices are set to remain high this year, we expect real GDP growth to slow to 6.7% from last year's 8.4%, the fastest rate of growth for two decades. The growth slowdown will mean less demand for foreign-supplied goods and services. According to BMI forecasts, Pakistan's current-account deficit during 2005/06 will narrow to US$2.39bn, or 2.0% of GDP

If you would like to subscribe to South Asia Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to South Asia Monitor please click on the trial link below.