ISLAMABAD: Standard and Poor’s (S&P) Ratings Services revised projections for Pakistan’s average real Gross Domestic Product (GDP) growth for 2015 to 2017 to 4.6 per cent from 3.8 per cent and also upped its outlook on Pakistan’s long-term ‘B-‘ credit rating to ‘positive’ from ‘stable’.
The per-capita GDP was estimated to increase 4.3pc to about $1,460 this year, from 5.4pc in 2014. S&P affirmed Pakistan’s ‘B-‘ long-term and ‘B’ short-term sovereign credit ratings.
S&P attributes the largely positive projections to diversification in income generation, the government’s efforts towards fiscal consolidation, improvement in external financing conditions and performance, and stronger capital inflows and remittances.
Lower oil prices have also contributed towards bolstering business confidence and investment expenditure.
GDP per capita
GDP per capita is expected to average 2.6pc over the period 2015-2019 due to greater confidence in the agriculture and construction sectors, and in Pakistan’s trading partners.
Inflation
Inflation is expected to average 4.8pc over the period 2015-2019. Year on Year Consumer Price Index inflation followed a downward trend starting October 2014, and continues to decline in 2015 according to data in the State Bank of Pakistan Inflation Monitor.
Inflation slowed to 2.1pc in April 2015 from 2.5pc in the preceding month due to lower fuel and food prices ─ the lowest level since 2003.
