IMF RAISES GROWTH OUTLOOK FOR SOKOR TO 3.6%

The International Monetary Fund (IMF) on Friday, March 26, 2021, sharply raised its growth outlook for South Korea this year, citing robust exports and the country's fiscal policy support amid the pandemic, Kim Soo-yeon reported for Yonhap News Agency.

The IMF forecast the South Korean economy to grow 3.6 percent this year, up from its estimate in January of 3.1 percent. The upward revision came as the IMF issued a report on the outcome of its annual consultation with South Korea held in January.

IMF said Asia's fourth-largest economy is expected to recover this year, "supported by a gradual normalization of COVID-related factors and stronger external demand." It also took into account the anticipated impact of the latest 15 trillion-won (US$13 billion) extra budget.

The IMF's projection is well above the growth estimates made by the Organization for Economic Cooperation and Development (OECD) and the Bank of Korea (BOK.) The OECD expected Asia's fourth-largest economy to expand 3.3 percent this year, and the BOK forecast the Korean economy to grow 3 percent.

The South Korean economy contracted 1 percent last year, the first annual retreat since the 1997-1998 Asian financial crisis amid the COVID-19 pandemic. But it contracted by a smaller margin than most other advanced nations.

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