The International Monetary Fund (IMF) on Jan. 26 raised its growth forecast for the Korean economy this year to 3.1% in its World Economic Outlook update. (Yonhap News)

By Sarah Oqelee and Lee Hana

The International Monetary Fund (IMF) has raised its growth forecast for the Korean economy this year to 3.1%, according to its World Economic Outlook update released on Jan. 26. 

Back in October last year, the IMF predicted growth of 2.9% for Korea this year.

The IMF outlook for the Korean economy this year was 3.4% in April last year and later dropped to 3.0% in June and 2.9% in October. This is the first time the forecast has been raised since.

Based on the IMF's estimate, Korea's combined economic growth rate is expected to reach 2.0% in 2020-21, the highest among 11 advanced economies. The estimate for the U.S. is 1.5%, Japan minus 2.2%, Germany minus 2.1%, France minus 4.0%, Italy minus 6.5% and Spain minus 5.9%.

The Ministry of Economy and Finance said, "This means that Korea's real economy will have the highest recovery to pre-COVID-19 levels," adding, "This reflects the high evaluation of Korea's response in the process of overcoming COVID-19 through quarantine and active policy responses."

The IMF also forecast the global economy to grow 5.5% this year, up from its previous projection of 5.2%.

sarahoqelee@korea.kr