RTTNews - Thursday, Pakistan's central bank said the economy is likely to grow between 2% and 3% during the fiscal year 2009, down from an initial forecast of 2.5%-3.5%.

The State Bank of Pakistan said in a report that the country's fiscal deficit may hover between 4% and 4.5% of gross domestic product in the year ending June 30. Average consumer price inflation for the current fiscal year is expected to stay between 20.5%-21.5%. It was an upward revision from between 19.5% and 20.5% forecast in April.

Major macroeconomic indicators show underlying weaknesses which, if not addressed, could hamper economic recovery, the central bank said.

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