The Asian Development Bank (ADB) has released a report on September 25, 2024, indicating that Pakistan's economic growth improved to 2.4% in the last fiscal year and is projected to reach 2.8% in the current financial year [a1eca21c]. This recovery is primarily supported by increased domestic consumption driven by agricultural income and remittances from overseas Pakistanis [a1eca21c].
ADB Country Director Yong Ye emphasized the importance of consolidating public finances and improving the business environment to sustain this growth [a1eca21c]. The report also highlights the necessity of a well-regulated monetary policy to maintain inflation around 15%, which is crucial for economic stability [a1eca21c]. Despite the positive outlook, the ADB warns that downside risks remain, underscoring the need for continued economic reforms to ensure long-term stability [a1eca21c].
In a related context, the ADB has also upgraded Singapore's GDP growth forecast for 2024 to 2.6%, driven by rising demand for electronic goods and financial services, reflecting a broader trend of economic recovery in the region [3b3537e3]. The ADB's forecasts for both countries highlight the interconnectedness of regional economies and the importance of strategic reforms to navigate ongoing challenges such as inflation and external demand fluctuations [3b3537e3].