IMF revises S. Korea's 2021 economic growth upward to 4.3%
Updated: 2021-07-28 13:41:04 KST
The International Monetary Fund has sharply revised up South Korea's economic growth forecast for 2021, as the country continues to consolidate its recovery trend on the back of robust exports.
In its latest outlook, the IMF expected the country to see 4.3 percent growth this year, up point-7 percentage points from its previous forecast in April.
The projection is the highest among the figures given by some other organizations, including the South Korean government and OECD.
The government projected 4.2 percent growth, and the OECD 3.8 percent.
The IMF also raised next year's growth outlook for Korea to 3.4 percent from the previous 2.8 percent.
The increase comes as Asia's fourth-largest economy sees a steady recovery with solid exports of chips and automobiles, as well as improving domestic demand.
It's GDP for the first half of this year jumped 3.9 percent on year, higher than the Bank of Korea's projection.
Exports during the first 20 days in July rose more than 32 percent on-year, as demand for chips, autos and petroleum products continue to increase.
After the report was released, the finance minister Hong Nam-ki wrote on Facebook that the projection suggests international recognition for the country's excellent economic resilience and policies.
Hong also pledged continuous economic measures as well as virus prevention efforts, mentioning how the country is once again facing challenges from the fourth COVID-19 wave.
Meanwhile for the global economy, the IMF maintained its earlier projection of 6-percent growth.
However, developing economies' growth was downgraded by point-4 percentage points from three months ago.
The IMF cut its projection for China by point-3 percentage points and slashed India's by 3 percentage points.
The report suggests that the slow rollout of vaccines in developing nations could have been a factor which could mean that the pandemic is widening inequality.
Kim Sung-min, Arirang News