S. Korea to post current account surplus this year: IMF

SEOUL, May 10 (Yonhap) -- South Korea is expected to post a current account
surplus in 2009, making a turnaround from the previous year's deficit as imports
will decline faster than exports amid a protracted global economic slowdown, a
report showed Sunday.
According to the report by the International Monetary Fund (IMF), South Korea's
current account surplus will amount to US$20.7 billion this year, compared with a
deficit of $6.4 billion a year earlier. The projected surplus would be the eighth
highest among advanced nations.
The turnaround would be achieved as imports are likely to decline at a faster
pace than exports, the report showed. The current account measures trade, service
and investment flows between the country and the rest of the world.
Japan is expected to top the list of advanced nations by registering a surplus of
$76.3 billion, followed by Germany with $71.6 billion, Norway with $37.6 billion
and Switzerland with $34.2 billion, the report showed. Taiwan, Sweden and
Singapore will come next with surpluses of $32.2 billion, $24.8 billion and $23
billion respectively.
However, the United States, the epicenter of the global financial turbulence that
started last summer, was predicted to post a deficit of $393.2 billion this year,
according to the report.
The IMF expected South Korea, Asia's fourth-largest, will see its current account
surplus grow further to $22.1 billion in 2010 and to $24.1 billion in 2011,
bringing its ranking among advanced nations to seventh.
The upbeat outlooks for South Korea came after it reported a record current
account surplus of $6.65 billion in March. The Bank of Korea, the nation's
central bank, forecast a surplus of around $18 billion this year.
Buffeted by a protracted global downturn, its economy is feared to contract 2.4
percent this year, the first minus growth since the 1997-98 financial meltdown,
according to the latest prediction by the central bank.
kokobj@yna.co.kr
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