IMF further lowered Korea’s growth rate forecast to 1.5%… Half a year 0.5%p↓ :: Sympathy Media Newsis News Agency ::

The International Monetary Fund (IMF) released its World Economic Outlook for April… Recovery slower than expected

The global economy is projected to decrease by 0.1% to 2.8%… 3.0% predicted after 5 years

“A tough recovery process… Emphasis on tightening monetary policy and selective support”

[세종=뉴시스] Reporter Oh Jong-taek = The International Monetary Fund (IMF) has lowered its forecast for Korea’s economic growth this year to 1.5 percent. It is lower than the forecast in January, and has been revised down by 0.5 percentage points (p) in the past half year.

According to the Ministry of Strategy and Finance on the 11th, the International Monetary Fund (IMF) announced the “April 2023 World Economic Outlook (WEO)” and predicted that the Korean economy will grow at 1.5% this year.

It fell 0.2%p from the 1.7% announced in January, and fell 0.2%p in three months. The IMF predicted that the Korean economy would hardly regain its vitality from the second half of last year, but recently it has predicted that the recovery will be slower than originally expected.

In the July last year’s forecast, this year’s growth rate was revised down by 0.8%p from 2.9% to 2.1%, and then further reduced by 0.1%p in October. It has been lowered by 0.5%p in the last six months, and if you broaden your horizons to the past year, it is lowered by 1.4%p.

The growth rate forecasts presented by the IMF this time are ▲government (last December, 1.6%) ▲Bank of Korea (February, 1.6%) ▲Korea Development Institute (KDI, February, 1.8%) ▲OECD, It is lower than March, 1.6%), but it is the same as the recently announced ▲ Asian Development Bank (ADB, 1.5%).

The IMF also lowered its economic growth rate for next year by 0.2%p from 2.6% to 2.4%.

The global economic growth rate for this year is expected to be 2.8%, down 0.1%p from last January (2.9%). Recently, concerns have been raised about the possibility that the global financial market unrest will spill over to the real market.

In particular, the International Monetary Fund (IMF) projected the medium-term growth rate, the global economic growth rate, at 3.0% five years from now. This is the lowest figure since April 1990, when the World Economic Outlook was published, and falls short of the average annual growth rate (3.8%) of the global economy over the past decade.

Crystallina Georgieva, the head of the International Monetary Fund, said earlier that the global economy would grow at an average annual rate of 3% over the next five years.

The IMF evaluated the global economic conditions this year as a ‘difficult recovery process’. They expressed concern over the spread of financial market instability, such as the recent Silicon Valley Bank and Credit Suisse crisis, while instability factors such as the Russia-Ukraine war, deepening economic fragmentation, and inflation, which have plagued the world economy since last year, have not been resolved.

In addition, it raised the excessively high level of public and private debt and the rise in credit spreads (the gap between government bond and corporate bond yields) centered on emerging and developing countries as potential risk factors.

The IMF stressed the need to maintain a tight monetary policy stance. Fiscal authorities have recommended fiscal tightening to keep pace with monetary policy and manage debt. He emphasized that financial support to alleviate the cost of living needs to be selectively targeted at the vulnerable.

In addition, in the mid- to long-term, it urged the government to manage its fiscal deficit and debt to a sustainable level and to rapidly transition to a low-carbon economy.

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