News Room - Business/Economics

Posted on 10 Apr 2008

Korean economy to grow 4.2 percent this year: IMF

   

Korea’s economy is expected to grow 4.2 percent this year and slightly higher at 4.4 percent in 2009, the International Monetary Fund (IMF) forecast Wednesday (Apr. 9).

Such growth would be above the 4 percent average growth for newly industrialized Asian economies for this year, but the same for 2009. The growth for 2007 was tallied at 5 percent.

IMF’s numbers are more conservative than the 4.6 percent growth predicted by the World Bank for this year, followed by a 5 percent expansion in 2009.

Export growth remained strong in Korea, the IMF’s Asia-Pacific Regional Economic Outlook said.

"In Korea, domestic demand was supported by an acceleration in construction and investment activity," it said.

For the region, the outlook said such strength in domestic demand, combined with rising food and energy prices, is building up inflation pressure in a number of countries in the region.

"Growth prospects remain dependent on how resilient the region’s financial systems and economies are to the ongoing financial market dislocation and the associated slowdown in the advanced economies," the IMF said.

China’s prospects topped the growth rate, with 7.5 percent this year and 7.8 percent in 2009. This is below the 8.9 percent achieved in 2006 and 9.1 percent in 2007.