Coordinator to Federal Tax Ombudsman and Chairman Kyrgyzstan Trade House Meher Kashif Younis Sunday predicted that not only Pakistan but also the global economy will confront a tougher year in 2023 as main engines of global growth –the US, Europe and China — are experiencing bleak economic conditions.
Speaking at a seminar on “Impact of global recession on Pakistan economy & study chances to avoid it” held under the aegis of Gold Ring Economic Forum, a strategic think tank, quoting IMF MD Kristalina Georgieva he said she had also hinted that “the new year is going to be tougher than the year we left behind”.
Meher said the reason is the three big economies-the US, European and China-all slowing down simultaneously. He said the Russia-Ukraine conflict is attributed as one of the major factors behind this dismal economic growth and mounting spiralling inflation pressure coupled with high-interest rates engineered by central banks aimed at bringing price pressures to heal.
He said for the first time in 40 years, China’s growth in 2022 is likely to be at or below global growth. He said, “IMF had also predicted that a third of the global economy will be in recession and half of European will also be in a recession this year. However, the US is most resilient and it may avoid recession as its market remains quite strong.” He said since China has scrapped its zero-covid policy and embarked on a reopening of its economy, consumers there remain wary as coronavirus cases surge.
Meher said the prevailing slackening global economic scenario will also affect the fragile economy of Pakistan. He said not only Pakistan but 90 other countries of the world have also faced massive devaluation of their currencies against the dollar.
He said one of the viable options left is to revert to the century-old barter system to offset the Dollar pressure on economies.—APP
