IMF maintains Korea's 2023 growth outlook at 1.4 percent

The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S. [REUTERS/YONHAP]

The International Monetary Fund (IMF) maintained its 2023 growth outlook for Korea at 1.4 percent Tuesday but revised down the forecast for next year amid a global economic slowdown.

The organization's latest projection for this year is the same as its forecast made in July when it slashed the growth outlook for Korea by 0.1 percentage point, citing “persistent challenges” in the global economy.

The figure is on par with the Korean government and the Bank of Korea's 1.4 percent forecasts for this year. The Asian Development Bank set its outlook at 1.3 percent.

The IMF, however, cut its growth projection for Korea for 2024 to 2.2 percent from the earlier forecast of 2.4 percent, as the faltering Chinese economy and the sluggish manufacturing sector have slowed down the global economy.

Korea is struggling with falling exports as aggressive monetary tightening by the United States and other major nations to curb inflation has weakened demand.

Exports, a key growth engine, have logged an on-year fall since October last year, though the government forecast a turnaround as early as this month on the back of rising demand for semiconductors.