IMF slices estimate for Korea’s growth to 3.2%

The International Monetary Fund (IMF) has cut its 2013 growth outlook for Korea’s economy to 3.2 percent, government sources said yesterday.

The outlook is down from 3.6 percent predicted by the IMF in October. The projection is still higher than the Seoul government’s projection that the economy will expand 3 percent this year.

The revision was submitted to the Group of 20 member countries before they held their meetings in Moscow last week, according to the sources.

The move comes as the IMF cut its 2013 growth outlook for the global economy from 3.6 percent to 3.5 percent last month, citing a delayed euro zone recovery.

The IMF’s estimate is the latest in a series of growth revisions for Korea.

The Bank of Korea lowered its outlook for Korea from 3.2 percent to 2.8 percent in January.

The Ministry of Strategy and Finance also cut its growth projection from 4 percent to 3 percent in December.

The Korean economy is facing tough external market challenges stemming from the prolonged euro zone debt crisis and less demand for its products from major advanced countries.

Meanwhile, the IMF forecast that South Korea’s economy will grow 3.9 percent next year, the sources said. Yonhap