Assignment :01

Roll Number CE-17092

Date : 15th October 2019
Macroeconomics and Macroeconomic indicators
Macroeconomics is a branch of economics which will focus on the different aspects
of the economy and how they are interrelated to each other for generation of
wealth.
The aspects include performance of the country its behavior and decision taken
related to the economy of the country.
The major indicators of macroeconomics are;
1. Gross domestic product (GDP)
2. Unemployment ( Useless Labor force )
3. Inflation
4. economic growth
5. interest rate (Monitory policy )
6. balance of payment.
7. Stock Exchange reserves

Pakistan Economic Growth

Economic growth in FY 2020 is likely to remain weak as Pakistan’s severe twin
deficits require fiscal austerity. In addition, a tighter monetary stance and still-
elevated inflation are expected to eat into household spending and investment.
Deteriorating relations with India, and substantial financing needs, represent
additional risks to the outlook. Our panelists see growth of 3.1% in FY 2020,
which unchanged from last month’s estimate, and 4.0% in FY 2021.
Pakistan Economy Data
2013 2014 2015 2016 2017
Population (million) 183 186 190 194 197
GDP per capita (USD) 1,267 1,314 1,426 1,440 1,545
GDP (USD bn) 231 245 271 279 305
Economic Growth (GDP, annual variation in %) 3.7 4.1 4.1 4.6 5.2
Consumption (annual variation in %) 2.1 5.6 2.9 7.6 8.5
Investment (annual variation in %) 2.6 2.5 15.8 7.5 10.3
Industrial Production (annual variation in %) 0.8 4.5 5.2 5.7 4.6
Unemployment Rate 6.0 6.0 5.9 6.0 6.0
Fiscal Balance (% of GDP) -8.0 -5.5 -5.3 -4.6 -5.8
Public Debt (% of GDP) 62.6 62.7 61.8 65.5 65.1
Money (annual variation in %) 16.9 12.6 12.8 14.5 13.9
Inflation Rate (CPI, annual variation in %, eop) 9.2 4.3 3.2 3.7 4.6
Inflation Rate (CPI, annual variation in %) 7.7 7.2 2.5 3.8 4.1
Policy Interest Rate (%) 9.00 10.00 6.50 5.75 5.75
Exchange Rate (vs USD) 105.4 100.8 104.9 104.4 110.7
Exchange Rate (vs USD, aop) 101.5 101.0 102.8 104.7 105.3
Current Account (% of GDP) -1.1 -1.3 -1.0 -1.7 -4.1
Current Account Balance (USD bn) -2.5 -3.1 -2.8 -4.9 -12.6
Trade Balance (USD billion) -15.4 -16.6 -17.3 -19.3 -26.7
Exports (USD billion) 24.8 25.1 24.1 22.0 22.0
Imports (USD billion) 40.2 41.7 41.4 41.3 48.7
Exports (annual variation in %) 0.3 1.1 -3.9 -8.8 0.1
Imports (annual variation in %) -0.5 3.8 -0.7 -0.2 18.0
International Reserves (USD) 8.5 11.8 16.0 20.9 18.7
External Debt (% of GDP) 26.3 26.7 24.1 26.5 27.