IMF holds S. Korea's growth outlook steady at 2.7 pct for 2016

All News 22:00 October 04, 2016

SEJONG, Oct. 4 (Yonhap) -- The International Monetary Fund (IMF) kept South Korea's economic growth forecast for this year and next year unchanged in its latest quarterly economic outlook, the country's finance ministry here said Tuesday.

The agency earlier anticipated that Asia's fourth-largest economy will expand 2.7 percent in 2016 and 3 percent in 2017, and it held the rates steady in its latest World Economic Outlook released globally, according to the Ministry of Strategy and Finance.

It is slightly lower than the South Korean government's growth target of 2.8 percent.

In its earlier report compiled after an annual consultation meeting with the Seoul government in June, the IMF said South Korea will maintain its growth momentum on the back of a stronger housing market and the impact of fiscal and monetary easing.

But a rapidly aging population and heavy export reliance will weigh heavily on the economy amid a slowdown in world trade.

Meanwhile, the IMF also maintained its estimate on the global economy unmoved at 3.1 percent for this year and 3.4 percent for next year.

The United States will grow 1.6 percent this year, down 0.6 percentage point from its earlier estimate of 2.2 percent set in July, while its 2017 growth will also be revised down by 0.3 percentage point to 2.2 percent.

The Washington-based organization raised its forecast on the eurozone countries by 0.1 percentage point each to 1.7 percent for this year and 1.5 percent for next year.