WASHINGTON (HRNW)- The International Monetary Fund (IMF) has released its World Economic Outlook Report 2026, highlighting that the ongoing conflict in the Middle East has significantly impacted global economic progress. According to the report, global growth is projected to slow down by 0.2%, settling at an estimated 3.4%.
Economic Projections for Pakistan
The IMF predicts a slowdown in Pakistan’s economic growth rate alongside a rise in inflation. Key takeaways from the report regarding Pakistan include:
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Economic Growth: The GDP growth rate for the current fiscal year is projected at 3.6%. This sits below the federal government’s set target of 4.2%.
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Inflation: Inflation is expected to reach 7.2% during the current fiscal year, a significant jump from the 4.5% recorded last year. The report warns that inflation could further escalate to 8.4% in the next fiscal year.
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Employment: On a positive note, the unemployment rate is expected to decrease from 7.1% to 6.9% this year, with a further potential drop to 6.5% in the following fiscal year.
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Current Account Deficit: The deficit is projected at 0.4% of GDP for the current year, potentially widening to 0.9% next year.
Global Impact and Energy Security
The report emphasizes that the Middle East conflict has disrupted global energy supplies and market stability, urging nations to redefine their economic priorities. The IMF noted that the duration and intensity of the conflict will remain the primary factors determining the future global economic outlook.
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