ⓒYONHAP News, Getty Images Bank

The International Monetary Fund(IMF) has raised its growth outlook for the global economy this year to six percent while also raising that for South Korea to three-point-six percent. The key organization projected that advanced countries, particularly the U.S., will lead the global economic growth, but added not all nations would enjoy even growth. 

In its World Economic Outlook released on Tuesday, the IMF marked up the global growth forecast by half a percentage point from its previous outlook in January to six percent. Compared to October, it marks an increase of zero-point-eight percentage points.

By country, the agency forecast growth of six-point-four percent for the U.S., eight-point-four percent for China, four-point-four percent for the euro area and three-point-six percent for South Korea, all upgrades from its previous projections.

IMF chief economist Gita Gopinath said that despite the world still being in the COVID-19 pandemic, there is reason for optimism.

[Gita Gopinath / Chief Economist of the International Monetary Fund]

"It is one year into the COVID-19 pandemic and the global community still confronts extreme social and economic strain as a human toll rises and millions remain unemployed. Yet even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible."

The IMF believes the world economy will see faster-than-expected recovery this year due to expanded COVID-19 vaccine rollouts and proactive fiscal spending in countries around the world.

[Gita Gopinath / Chief Economist of the International Monetary Fund]

"Swift policy action worldwide, including 16 trillion dollars in fiscal support, prevented far worse outcomes, our estimates suggest last year's severe collapse could have been three times worse had it not been for such support."

The IMF said the Joe Biden administration’s new fiscal package worth one-point-nine trillion dollars is expected to deliver a strong boost to growth in the U.S. in 2021 and provide a sizable positive spillover to trading partners.

However, the agency was quick to add that not all countries are expected to enjoy even growth, projecting that low-income and developing countries hit hard by the pandemic will see a slower recovery compared to advanced economies.

The IMF’s outlook for South Korea, already announced last month after an annual consultation between the two sides, is up half a percentage point from the agency’s forecast issued in January. The IMF expects South Korea to post growth of two-point-eight percent in 2022.