Moody’s Lowers Pakistan’s GDP Growth Outlook for 2020

With the continuous depreciation of the PKR against the USD, global credit rating agency Moody’s has lowered Pakistan’s real GDP growth outlook.

Moody’s predicts Pakistan’s 2020 economic growth to slow down to a range of 2.0% to 2.5%, reflecting the impact of COVID-19 on Pakistan’s economy. This is lower than its previous GDP forecast of 2.9%.

With movement restrictions in place to stop the spread of COVID-19, Moody’s expects Pakistan’s service sector (which has strengthened the country’s recent economic growth), to be severely disrupted. Further, the textile sector which accounts for around 60% of Pakistan’s total exports has als...