ISLAMABAD - Asian Development Bank (ADB) in its latest report observed that inflation rate would reduce in the ongoing financial year 2014-2015 mainly because of the appreciating of Pakistani rupee that helps in containing the local prices for imports.
“Pakistan recorded a surprising 4.1% growth in the fiscal year that ended in June, above the ADO 2014 forecast of 3.4,” says Asian Development Outlook (ADO) 2014. The Asian Development Outlook is ADB’s main economic forecasting product, published each April with an update published in September and brief supplements published in July and December. According to ADO, “Pakistan now expects slower inflation across 2014 and 2015 as an appreciating Pakistan rupee helps contain local prices for imports.”
According to the press statement issued here, overall, Developing Asia remains on track toward steady growth in 2014 despite slower-than-expected growth in the United States (US) in the first quarter, it says. The major industrial economies are anticipated to expand by 1.5% this year, a downward revision from the 1.9% forecast in April’s ADO 2014. Softer US growth has been somewhat offset by Japan’s robust first quarter performance while the euro area has generally met expectations. In East Asia, quarterly growth in China met ADB expectations with steady consumer demand, targeted government measures to stabilize investment, and a pickup in external demand in the second quarter of 2014. Both retail sales and industrial production have been picking up pace and overall, China is on track to meet ADO 2014 forecasts of 7.5% growth in 2014 and 7.4% in 2015. For India, ADB maintains its growth forecast at 5.5% for fiscal year (FY) 2014, but upgrades its FY2015 forecast by 0.3 percentage points to 6.3% as anticipated reform bears fruit. Nepal’s growth was seeing a strong finish to its fiscal year. Overall, South Asia’s 2014 forecast is nudged up 0.1 percentage points to 5.4%. The improved outlook in India pushes up the subregional forecast for 2015 from 5.8% to 6.1%.