A worker arranges spools of thread at a textile factory in Karachi, Pakistan. PHOTO: AFP
This is 0.5% above the estimated 4.9% growth rate in 2014. The report forecasts a further acceleration to 5.7% growth rate in 2016.
India, which accounts for approximately 70% of South Asia’s economic output, will lead the economic recovery, while Bangladesh and Iran are also expected to see strong growth. The report notes that there will be “robust external demand” but also “moderate strengthening of domestic consumption and investment” as several countries benefit from improved macroeconomic conditions.
The report also noted that governments in the region have made progress at implementing economic policy reforms, thereby boosting consumer and business confidence.
Pakistan's progress
Due to the precarious security situation in the country, and low fixed investment, the report said, “macroeconomic fundamentals remain fragile” in Pakistan, in spite of the GDP rebounding to an estimated 4.2% in 2014 after robust private and public consumption.
The report forecasts economic growth to fall slightly in 2015, but pick up again in 2016.
In Pakistan, India, Iran and Sri Lanka, unemployment rates remained significantly higher for women, while the share of vulnerable employment, which is defined as unpaid family workers and own-account workers, was 60% in Pakistan and 80% in India.
“This illustrates the magnitude of the employment challenges the region is facing and highlights the importance of generating quality employment,” the report said.
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@FirstThing1st!: I don't see corruption to end in Pakistan anytime soon as well; and these industrialists and politicians will continue to rob our country. But the point I am trying to make here is Pakistan will save $6 billion from low oil prices in 2015. Pakistan's current foreign currency reserves stand at $15 billion. Will it not change anything to the economy. Inflation is lowering, people will have more purchasing power. I am very hopeful insha Allah Pakistan's economy will definitely improve in 2015.
@Ali Muqadus: You are an optimist! But I wouldn't bet nations future on saving from petrol. I want all industrialist to PAY-UP their electric and gas bills... From PM's family industries to his friends'. That itself runs in billions of dollars. Until or unless these industrialists don't start paying their gravely past dueutilities and taxes I don't expect any growth, period. All must participate in nations growth. Why these Rich Industrialists are FREE RIDERS? Why only the nation's poor and the Govt servants are feeding these monsters?
Assalam o Alaikum
I don't believe this. 2015 is the year of progress for Pakistan Insha Allah. Pakistan will save around $6 billion because of low oil price. This will definitely boost the economy and increase country's foreign currency reserves. I mean think about it. Government has to impose so many taxes just to get 1.1billion dollars from IMF.
Insha Allah Pakistan's economy will boom this year.
@BelieveItOrNot!: Agree. But then if you dig too deep at that point then you would end up questioning the concept of nationalism itself which will lead to a debate which would most probably end with you accepting that its just human nature.
@Indian: I see your point, bro! We both are made to believe little too much in our "Origins & Breed" and Very Little of our Skills & our Potential! Why? Its easy for Power Hungry leaders... who is on a Vote-Run to "get you out to vote" based on emotions compare to pure intellect! In Reality; We are lambs... sold for the slaughter at The Political Butcher House! Save Yourself!
It really is hilarious how you guys trash every report which is negative towards Pakistan as 'propaganda' but praise any report which is negative about India and positive about Pakistan.
Did someone mention ostriches?
@BelieveItOrNot Good to hear it from a Pakistani that "We are the same people". Till date Indians used to say this but Pakistanis claimed to be more similar to Arabs instead.
Modi and his team is getting desperate to make a dent in spiraling down Indian Image & it's markets. It's not possible the news is correct. We make a profit every time India does, because Asian Products export are not much different when it comes to core quality improvement. As much as India wish our fall... Our economies are related in international markets. Foreign investors "unbelievably though" see us as same market with little difference. If Pak improve its quality India cashes it too. Pak & India have to accept this fact; World buyers treat us as same people, it's a fact! I see and hear it all the time on my Business consulting and outsources trips to hundreds of consumers worldwide to buyers & investors.
Pakistan is the Congo of SE Asia. Going backwards and fast.
The title is misleading. Pakistan's economy will not 'fall'. The rate of growth of the country's GDP will be a slightly less than last year's 4.2%, but will still grow at a respectable rate of around 4%, and will pick up even further after 2015. With the country finally dealing with the menace of terrorism in a serious fashion, the security situation is expected to get better and an additional 2% of growth can be expected on top of the normal trajectory.
@Hamid Gul: why do you not call propaganda, like Google, twitter, face book, ultra-sensitive techno. of treatments, education in foreign western countries, green card, technology of developed nations, we have full trust on all these things except, whenever they say or predict about us then we become more expert than west and usa on any issue
Dollar Dar need to vacate his office, urgently. He need to be RETIRED. He has made enough millions for a luxurious lifestyle in Dubai, maybe London. Just go. While PIA is still flying. See,..free first class tickets.
If it falls in 2015, how will it gain in 2016? Conditions in India are more worst with I've 300 million living under poverty line.. economics to me is a tool in hands of developed world.. I don't foresee a change in 2016 particularly with current government
South Asian economies are expected to grow by 5.4% in 2015, a four-year high, a report published by the Department of Economic and Social Affairs (DESA) of the United Nations (UN) on Monday. However, Pakistan’s economy is expected to fall during 2015. ET, wait for 31 Dec. 2015, South Asian economies cannot grow if Pakistan’s economy is expected to fall during 2015. And if during 2015 more Pakistani learn about $300,000,000,000 trade and more Pakistanis invested in white gold trade then more $ will stay in Pakistan.
Totally misleading. Pakistan's economy is projected to grow at a slower pace this year. That is what I conclude from the report. The reporter/ editor seems to be confused. Even when the economy grows at a pace that is higher than birth rate, the economic condition of the population, on an average, improves.
Hopefully, you would assign someone who has some knowledge of economics in future. Or is it an attempt to post a catchy headline?
This region need to do more, specifically India and Pakistan. There is lot of economic potential here, hope the people recognize it. India need to return to 8% above growth rate if it has to be influential which is possible with these set of leaders. Just wish this region to prosper.
Tell me something new.
This is propaganda. Eating grass,thumping chests defending the ideological frontiers, teaching Americans and Indians lessons are much more important than economy.
Totally misleading headline. Economic growth will remain stagnant. It is NOT the same as "the economy will fall".
Completely wrong!!