WB projects 6.6% growth for Pakistan
By Asad Cheema

ISLAMABAD—World Bank has estimated Gross Domestic Product (GDP) at 6.9 percent this year in South Asia that will be followed slashing to 6.4 percent in 2006.
According to World Bank’s annual Global Economic Prospects (GEP) report for 2006, this year’s performance reflects stable growth of about 7 percent in India and 6.6 percent growth in Pakistan.
Report says that this strong growth can be attributed to increased consumption, investment, exports and industrial production in both countries and further adds that earthquake in Pakistan had catastrophic human consequences, its overall economic impact is expected to be small.
Growth in the region’s other countries is expected to decelerate from 5.9 percent in 2004 to 5.1 percent this year. This splashdown reflects increased political instability in Bangladesh and Nepal, flooding in Bangladesh and after-affects of Tsunami in Maldives and to a lesser extent able weather boosted agricultural output and GDP.
The report also forecasts that economic growth in developing countries will slow to 5.9 percent this year and to 5.7 percent in 2006, down from 6.8 percent in 2004.
Developing economies will continue to grow at historically very high rates and more than twice as fast as high-income economies.