ID :
43984
Tue, 02/03/2009 - 19:13
Auther :
Shortlink :
https://www.oananews.org//node/43984
The shortlink copeid
IMF predicts S. Korean economy will shrink 4 pct this year
SEOUL, Feb. 3 (Yonhap) -- The International Monetary Fund (IMF) predicted Tuesday
the South Korean economy will shrink 4 percent this year, sharply downgrading its
earlier projection, citing weak domestic demand and exports amid the global
economic slump.
Asia's fourth-largest economy, however, will likely accelerate its recovery from
the second half and is expected to grow 4.2 percent in 2010, marking the largest
turnaround among world economies, the global financial body said in its official
outlook report on South Korea.
The IMF earlier predicted a 2 percent expansion this year for South Korea. Last
week, it forecast that the global economy would expand by just 0.5 percent this
year, the slowest pace since World War II, compared with an earlier projection of
2.2 percent.
The IMF joined a growing number of think tanks and investment banks that have
sharply lowered their outlooks for South Korea in recent weeks to negative
growth.
Switzerland-based UBS predicted the economy would shrink 3 percent this year.
Moody's Investors Service lowered its outlook to minus growth of 2 percent, while
Fitch Ratings expected a 2.4 percent contraction. Standard & Poor's also lowered
its outlook for South Korea to zero percent.
The government currently aims to achieve a 3 percent expansion, while the Bank of
Korea, the nation's central bank, predicts growth of 2 percent, compared with 2.5
percent growth last year.
The IMF remained optimistic over long-term outlooks for South Korea, citing the
nation's strong fundamentals, the government's comprehensive and forward-looking
approach to the global turmoil and other economic-stimulus measures.
By country, the U.S. economy will contract 1.6 percent for this year, compared
with minus 0.7 percent growth the IMF predicted in November.
Japan's economy will also shrink 2.6 percent, compared with an earlier 0.2
percent contraction, while China's growth will grow 6.7 percent compared to a
previously-projected 8.5 percent advance.
kokobj@yna.co.kr
(END)
the South Korean economy will shrink 4 percent this year, sharply downgrading its
earlier projection, citing weak domestic demand and exports amid the global
economic slump.
Asia's fourth-largest economy, however, will likely accelerate its recovery from
the second half and is expected to grow 4.2 percent in 2010, marking the largest
turnaround among world economies, the global financial body said in its official
outlook report on South Korea.
The IMF earlier predicted a 2 percent expansion this year for South Korea. Last
week, it forecast that the global economy would expand by just 0.5 percent this
year, the slowest pace since World War II, compared with an earlier projection of
2.2 percent.
The IMF joined a growing number of think tanks and investment banks that have
sharply lowered their outlooks for South Korea in recent weeks to negative
growth.
Switzerland-based UBS predicted the economy would shrink 3 percent this year.
Moody's Investors Service lowered its outlook to minus growth of 2 percent, while
Fitch Ratings expected a 2.4 percent contraction. Standard & Poor's also lowered
its outlook for South Korea to zero percent.
The government currently aims to achieve a 3 percent expansion, while the Bank of
Korea, the nation's central bank, predicts growth of 2 percent, compared with 2.5
percent growth last year.
The IMF remained optimistic over long-term outlooks for South Korea, citing the
nation's strong fundamentals, the government's comprehensive and forward-looking
approach to the global turmoil and other economic-stimulus measures.
By country, the U.S. economy will contract 1.6 percent for this year, compared
with minus 0.7 percent growth the IMF predicted in November.
Japan's economy will also shrink 2.6 percent, compared with an earlier 0.2
percent contraction, while China's growth will grow 6.7 percent compared to a
previously-projected 8.5 percent advance.
kokobj@yna.co.kr
(END)
