The World Bank has released its Global Economic Prospects report 2022. In the report The World Bank analysed the effects of the coronavirus pandemic on economies around the world. The World Bank said it was surprised by Pakistan’s growth in the year 2021, citing record-high remittances and an accommodative monetary policy as the main reasons.

“Growth in Pakistan surprised on the upside last year supported by improving domestic demand, record-high remittance inflows, a narrow targeting of lockdowns, and accommodative monetary policy — real interest rates dropped precipitously during 2020 and remained negative throughout most of 2021,” the report read.

According to the report, Pakistan’s economy will grow by 3.4 per cent this fiscal year and by 4 per cent in 2022-23, owing to structural reforms that will improve export competitiveness and the financial viability of the power sector.

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However, the report stated that global economic growth will slow down to 4.1 per cent in 2022 from an estimated 5.5 per cent in 2021. The report also added a warning that “Omicron-related economic disruptions could substantially reduce growth” to as low as 3.4 per cent.