The year 2022 was a tough year for the global economy, including Pakistan. The Ukraine war and the resultant decade-high food and energy inflation, extreme weather events, and worsening relations between the US and China kept adding to the world’s economic woes.
Higher interest rates in the US and the EU, which were imposed to control inflation, are slowing economic growth. Germany, the UK, and many other European countries will slide into recession this year. The simultaneous economic slowdown in the US, EU, and China will affect the rest of the world, and Pakistan is no exception.
How will the economy of Pakistan perform in 2023? To answer this question, one does not have to be a soothsayer. Economies worldwide, except oil-exporting Gulf countries, are in troubled waters. Managing Director IMF Kristalina Georgieva has warned that recession is here to stay for some time. She alerts that one-third of the world economy and half…
