mf-forecasts-pakistans-gdp-growth-at-3-in-2025

**IMF Forecasts Pakistan’s GDP Growth at 3% in 2025**

The International Monetary Fund (IMF) has recently adjusted its economic outlook for Pakistan, forecasting a GDP growth rate of 3% for the year 2025. This revision marks a slight decrease from the previously estimated 3.2% growth, indicating ongoing economic challenges within the country.

**Challenges and Projections**

Despite these challenges, the IMF’s latest projections suggest a more optimistic outlook for Pakistan in 2026, with GDP growth expected to reach 4%. The institution did not provide specific reasons for the downward revision for 2025 but emphasized the country’s potential for growth in the following year.

**Global Economic Assessment**

The IMF’s revised forecast for Pakistan is part of its broader “World Economic Outlook Update: Global Growth – Divergent and Uncertain.” This report evaluates the global economic landscape, highlighting varying growth patterns across different regions and economies.

**Global Growth Trends**

Globally, the IMF projects a growth rate of 3.3% for both 2025 and 2026, slightly below the historical average. Chief Economist Pierre-Olivier Gourinchas emphasized the diverging growth patterns globally, with the United States demonstrating stronger performance compared to other major economies.

**Inflation and Commodity Prices**

Inflationary trends are expected to ease in the coming years, with global inflation projected to decline to 4.2% in 2025 and 3.5% in 2026. The IMF also noted a significant decrease in energy commodity prices, with non-fuel commodity prices expected to rise due to adverse weather conditions affecting key producers.

**Regional Economic Outlook**

Major economies like the United States, China, India, and the Eurozone have varying growth projections for 2025 and 2026. While the United States is expected to see growth, the Eurozone faces challenges that may impact its economic trajectory. China and India continue to show robust growth, with the IMF urging China to boost domestic demand for sustainable expansion.

**Conclusion**

As the IMF’s outlook indicates, the global economy is navigating through a period of uncertainty, with different regions experiencing divergent growth paths. While challenges persist, there are opportunities for growth and recovery in various economies, including Pakistan, in the medium term.