World Bank estimates fall in GDP per capita income to $1,399

[ghazi52]

.,.,

World Bank estimates fall in GDP per capita income to $1,399​

• Says poverty will inevitably increase with pressures from weak labour markets and high inflation

Tahir Amin
April 15, 2023

The World Bank has estimated a decline in GDP per capita income for Pakistan, ie, from $1,613.8 in 2021-22 to $1,399.1 in 2022-23.

The bank in its report 'Macro Poverty Outlook for Pakistan: April 2023' noted that GDP per capita growth is estimated at -1.5 percent in 2022-23 compared to 4.2 percent in 2021-22.

The unemployment rate is estimated to increase to 10.2 percent in 2022-23 compared to 10.1 percent in 2021-22. Poverty will inevitably increase with pressures from weak labour markets and high inflation.

In the absence of higher social spending, the lower middle-income poverty rate is expected to increase to 37.2 percent in FY23. Given poor households’ dependency on agriculture, and small-scale manufacturing and construction activity, they remain vulnerable to economic and climate shocks.

Gross investment is estimated to decline to 106 percent in 2022-23 against 13.3 percent in 2021-22. Gross Investment - Public is estimated to be 2.8 percent in 2022-23 compared to 3.4 percent in 2021-22.

Private Consumption growth is estimated at 1.3 percent in 2022-23 compared to 10 percent in 2021-22. The Bank has estimated revenue to decline to 10.9 percent of GDP in 2022-23 compared to 12.1 percent in 2021-22.

The bank noted that Pakistan’s economy is under stress with low foreign reserves and high inflation.

Activity has fallen with policy tightening, flood impacts, import controls, high borrowing and fuel costs, low confidence, and protracted policy and political uncertainty. Despite some projected recovery, growth is expected to remain below potential in the medium term, the report added.

World Bank estimates fall in GDP per capita income to $1,399

* Says poverty will inevitably increase with pressures from weak labour markets and high inflation

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[Skull and Bones]

With Stagflation, GDP per capita will keep on slipping for 4-5 years or even more.

 

[legacytiger18]

With Stagflation, GDP per capita will keep on slipping for 4-5 years or even more.

I always wonder with per captita income of $1500 and looming default possibility, how pakistanis always try to compare themself with India, and even with Bangladesh. Some introspecttion is needed, and it will only do good to pakistan. Stop giving more and more resources to Army , as a first step. INDIA will never attack Pakistan

 

[pikkuboss]

With Stagflation, GDP per capita will keep on slipping for 4-5 years or even more.

By the time they come out of this mess, India's per capita will be 3 times of theirs.

 

[Skull and Bones]

I always wonder with per captita income of $1500 and looming default possibility, how pakistanis always try to compare themself with India, and even with Bangladesh. Some introspecttion is needed, and it will only do good to pakistan. Stop giving more and more resources to Army , as a first step. INDIA will never attack Pakistan

Very likely they will hit a per capita income of 1000-1100 in the coming 3-4 years. As its not unusual for the economy to contract by 25-30% in case of a default.