ECONOMIC IMPACT OF FLOODS IN PAKISTAN

PAKISTAN’S ECONOMY HIT BY FLOODS

Govt task to lower down effects on national economy

Razi Syed

Daily Times, September 9, 2010

KARACHI: In 2010, Asian export recovery has been largely driven by intra-regional trade with the US and Europe, making limited contributions, analyst said Wednesday.

US and Europe were directly responsible for less than 15 percent of Asian economies’ export growth in H1-2010 (with the exception of China and the Philippines).

In Pakistan, floods have hit economy hard, with losses estimated at $4 billion (2% of GDP). The heavy floods in the Indus River resulting from monsoon rains have caused widespread damage to the economy, Sayem Ali, economist Standard Chartered Bank Pakistan said.
He said nearly 20 million people have been displaced, making this one of the worst natural disasters in history.

Nearly 1.25 million houses have been completely destroyed, leaving most of the affected households without shelter. Losses to the economy are estimated at close to 4 billion (2 percent of GDP), Sayem maintained. The country expects a significant slowdown in GDP growth in FY11 (ends June 2011) and lower growth forecast to 2.5 percent from 4.5 percent, this would follow growth of 4.1 percent in FY10. It is expected FY11 inflation to jump sharply to 15 percent, versus earlier forecast of 12 percent, depending on the extent of the damage and the measures taken by the government to reconstruct and rebuild the affected areas, he added.

(...) [artículo aquí]