IMF slashes Korean economic forecast for 2025 to 2%

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IMF slashes Korean economic forecast for 2025 to 2%

The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington D.C. on Sept. 4, 2018. [REUTERS/YONHAP]

The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington D.C. on Sept. 4, 2018. [REUTERS/YONHAP]

 
The International Monetary Fund (IMF) has projected the Korean economy to grow 2 percent this year in its quarterly World Economic Outlook published on Friday, a 0.2 percentage point downgrade from its previous forecast in October, according to a release from Korea’s Ministry of Economy and Finance.
 
The projection, however, is in line with the 2 percent forecast included in the IMF Article IV delegation’s end-of-mission press release issued on Nov. 20, 2024.
 

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In November, the delegation projected the Korean economy to grow 2 percent this year, warning of heightened downside risks and uncertainties.
 
The 2 percent forecast by the IMF is slightly more optimistic than the Bank of Korea's 1.9 percent and the Ministry of Economy and Finance’s 1.8 percent, but lower than the 2.1 percent by the Organisation for Economic Cooperation and Development.
 
On the other hand, the IMF expected the global economy to grow 3.3 percent this year, a 0.1 percentage point increase from its prior forecast, as the sluggish growth in the eurozone would be offset by a strong advance in the U.S. economy.
 
The IMF cited the incoming Donald Trump administration’s protectionist policy direction, expansionary fiscal policy and immigration policy as some of the key risk factors for the global economy, according to the Finance Ministry.
 
The global financial organization upped its growth forecast for the United States from 0.5 percentage points to 2.7 percent. Its forecast for Japan remained unchanged at 1.1 percent.
 
The IMF expects advanced economies — including 41 nations such as the United States, Britain, Japan and Korea — to see average annual growth of 1.9 percent this year, up 0.1 percentage points from three months prior.
 
The forecast for emerging economies stood at 4.2 percent, unchanged from the October issuance. China’s growth projection was upped by 0.1 percentage point to 4.6 percent, and India’s was kept unchanged at 6.5 percent.

BY SHIN HA-NEE [[email protected]]
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