Saturday, 25 May 2024, 04:09:16 pm

Country's Gross Domestic Product grew by 1.7% in first half of current Financial Year: SBP
May 14, 2024

(File photo)

The State Bank of Pakistan has released a half year report on the state of the country's economy.

According to the report, the country’s macroeconomic conditions improved during the first half of the financial year 24 and the real economic activities moderately recovered against the contraction last year.

It noted that the current account deficit narrowed considerably, amid continued contractionary monetary and fiscal policies, better agricultural produce and ease in global commodity prices.

The real GDP, driven by the agriculture sector, grew by 1.7 percent in H1-FY24.

The recovery in the agriculture sector also supported some of the agro-based industries. In addition, withdrawal of import prioritization measures improved availability of raw materials for industry.

The report highlighted that despite some improvement in macroeconomic indicators, the economy continues to grapple with the structural bottlenecks. The major issues include limited savings, low investments in physical and human capital, weak productivity, stagnant exports, narrow tax base, and inefficiencies in Public Sector Enterprises (PSEs).

The report noted that despite restrained domestic demand, inflationary pressures remained persistent at elevated levels.

The Report expects continuation of modest economic recovery in the second half of FY24.