A World Bank report reveals that Pakistan's gross domestic product growth touched the lowest level amongst all regional states of South Asia in 2010-11, while it is projected to stand at second in the bottom in the ongoing fiscal year 2011-12.
A report titled 'World Bank projects global slowdown, with developing countries impacted' released by the Washington based Breton Wood Institution also projected that Islamabad's GDP would grow in the same range and would be standing at second number, only ahead of Nepal in the next financial year 2012-13
The executive summary of WB's report on South Asia states that "Economic activity in Pakistan, representing about 15% of regional GDP, continues to markedly lag outcomes elsewhere in the region, reflecting worsening security conditions, greater political uncertainty and a breakdown in policy implementation."
It further states that the GDP growth slowed to 2.4% in fiscal year 2010-11, ending in June 2011, from 4.1% in 2009-10, in part due to the economic disruptions of the devastating floods that hit in July and August of 2010.
It said that "Pakistan is projected to post a rebound to 3.9% in 2011-12 and to firm further to 4.2% in 2012-13."
Dwelling upon situation prevailing in South Asia, the report states that following a vibrant 9.1% growth rate in 2010 (calendar year), real GDP growth in South Asia decelerated to an estimated 6.6% in 2011, with a sharp fall off evident in industrial production and trade late in the year.
Nevertheless, regional growth is estimated to have exceeded the long term average of 6% (1998-2007), reflecting above trend activity in Bangladesh, India and Sri Lanka. GDP growth is projected to ease further to 5.8% in 2012 before strengthening to 7.1% in 2013.
Accounting for about 80% of South Asia's GDP, India has led the regional slowdown as its GDP growth weakened to an estimated 6.8% (at factor cost) in fiscal year 2011-12, ending in March 2012, from 8.5% in 2010-11. Growth is projected to hold steady at 6.8% in 2012-13 before accelerating to 8.5% in 2013-14. The Euro Area represents about one fourth of South Asia's merchandise export market, with Bangladesh, the Maldives and Sri Lanka particularly exposed to a downturn in European demand for merchandise.
(Sourced from www.thenews.com.pk)
