Gita Gopinath, chief economist of the International Monetary Fund, on Oct. 13 announces her organization's world economic outlook made in October that raised Korea's growth forecast this year to minus 1.9% from minus 2.1%. (Yonhap News)
By Xu Aiying and Yoon Sojung
The International Monetary Fund (IMF) has raised its growth forecast for the Korean economy this year from minus 2.1% to minus 1.9%.
This is the third highest among the 39 advanced economies categorized by the IMF and the second highest among the 37 member countries of the Organisation for Economic Co-operation and Development (OECD).
In the IMF's World Economic Outlook for October announced on Oct. 13 in Washington, the organization raised Korea's forecast by two-tenths of a percentage point from that made in June. The fund also predicted the global economy to shrink 4.4% this year, up eight-tenths of a percentage point from its June forecast and reflecting the speedy normalization of economic activity in many countries.
On slightly raising Korea's growth prospects this year, the IMF cited recovered export demand led by the resumption of economic activities by major trading partners and the aggressive response policy of the Korean government such as the implementation of a fourth supplementary budget.
The Ministry of Economy and Finance said in a media release, ''Korea's quarantine capacity and active response policy have been proven through the issuance of foreign exchange stabilization bonds and Fitch's decision to maintain Korea's sovereign credit rating. This has helped the country's growth projection this year remain at the top level among advanced economies and OECD member states.''
Meanwhile, the IMF predicted global economic growth next year of 5.2%, lower than its forecast of 5.4% made in June. It also projected the Korean economy to grow 2.9% next year, down from 3.0% under its previous forecast.