S. Korea expected to post fiscal surplus in 2014: IMF

SEOUL, Nov. 23 (Yonhap) -- South Korea is expected to post a fiscal surplus in
2014 mainly thanks to effective government-led spending plans amid fast-rebounding
economic conditions, a report said Monday.

According to the report by the International Monetary Fund (IMF), South Korea
will see the ratio of its fiscal surplus to gross domestic product (GDP) stand at
2.6 percent in 2014, a sharp turnaround from a 2.7 percent deficit predicted for
2010.
Asia's fourth-largest economy along with Saudi Arabia and Russia were among the
few members of the Group of 20 emerging and advanced countries whose fiscal
balances are expected post a surplus in the cited year, the report said.
The data suggest that the Seoul government will likely meet its target year of
2014 to turn its fiscal status into the black by streamlining spending, after
unveiling a series of stimulus measures over the past year including tax
reductions and an additional budget aimed at resuscitating the slumping economy.
Japan's fiscal status will remain in bad shape, with the deficit-GDP ratio
standing at 8 percent in 2014, the worst among the G20 countries, according to
the IMF. Britain, the United States and India are expected to register
deficit-GDP ratios of 6.8 percent, 6.7 percent and 5.3 percent, respectively.
The upbeat outlook for South Korea's fiscal status comes as its economy is making
a faster-than-expected rebound from a steep downturn caused by the financial
turmoil and a resulting global recession last year.
On Sunday, the Korea Development Institute, a state-run think tank, predicted
that South Korea's economy will grow 0.2 percent this year in the latest upward
revision in positive territory.
Meanwhile, the IMF report predicted that the ratio of South Korea's debt to GDP
will also sharply decline to 35.4 percent in 2014 from an estimated 39.4 percent
in 2010.
kokobj@yna.co.kr
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