The International Monetary Fund (IMF) raised its economic outlook for advanced countries such as the United States and South Korea by 0.5 percentage points this year. In particular, for Korea, it was significantly raised to 0.7%p, which is higher than the average of developed countries. The forecast for developing countries, such as India and China, was lowered by 0.4 percentage points.
Hong Nam-ki, Deputy Prime Minister of Economy, announced that the International Monetary Fund (IMF) revised the World Economic Outlook (WEO), which contained such information, as of 10 pm (Korean time) on the 27th. The International Monetary Fund (IMF) kept its global economic growth forecast for this year at 6.0%.
The International Monetary Fund (IMF) predicted that this year, the global economy will maintain the level of recovery initially expected, but the pace of recovery will widen the gap between countries. The spread of COVID-19, response, and policy capacity were cited as factors that deepened the gap. As a result, most developed countries are expected to recover rapidly from the impact of COVID-19, while developing countries are expected to recover at a slower rate than originally expected.
Deputy Prime Minister Hong Nam-ki said, “It is very meaningful that the International Monetary Fund (IMF) raised its growth forecast for the Korean economy this year from 3.6% (announced in April) to 4.3% amid the unequal recovery of the global economy.”
“The extent of the upward revision of Korea’s outlook is higher than the average of advanced countries, and this year’s growth forecast of 4.3% is higher than the 4.2% forecast by the Korean government (announced in June) and the highest level among the forecasts of major institutions.”
In this report, the International Monetary Fund (IMF) raised its forecasts for 2021 and 2022 only for four countries: South Korea, the United States, Italy and Australia. Deputy Prime Minister Hong explained that the active fiscal policies of advanced countries such as Korea are specified as the main factor in raising the economic outlook.
Deputy Prime Minister Hong said, “With expectations that the economic recovery will be faster than originally expected due to the spread of vaccines and stimulus measures in advanced countries, the IMF predicted Managing Divergent Recoveries in April. “Fault Lines Widen in the Global Recovery was evaluated,” he explained.
“It is noteworthy that the IMF outlook has been adjusted several times amid the chaos of the global economy, which is difficult to predict, but the evaluation of the Korean economy has not changed significantly. Maintaining the highest credit rating in history is more than just maintaining the rating,” he added.
“The fact that we have maintained the highest credit rating ever is the result of the international community’s recognition of our people’s differentiated crisis response capabilities and resilience,” he said. We will respond by mobilizing all our policy capabilities until recovery,” he said.
By Bae Ok-jin, staff reporter [email protected]