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IMF Lowers S. Korea's Economic Growth Outlook to 2%

Write: 2019-10-16 14:09:02Update: 2019-10-16 18:30:33

IMF Lowers S. Korea's Economic Growth Outlook to 2%

Photo : YONHAP News

Anchor: The International Monetary Fund(IMF) has again slashed its growth forecast for South Korea's economy this year to two percent. It also downgraded its growth outlook for the global economy to three percent, citing a "synchronized slowdown."
Our Bae Joo-yon has more. 

Report: In its World Economic Outlook report released Tuesday, the IMF cut South Korea's growth outlook for this year to two percent. That’s down point-six percentage points from an earlier forecast in April. 

The agency also slashed the country's growth projection for next year to two-point-two percent. 

IMF chief economist Gita Gopinath revealed the growth outlook for the global economy this year was lowered to three percent, down from the fund's previous forecasts in April and July, predicting the weakest growth since the 2008 financial crisis. 

[Sound bite: IMF Chief Economist Gita Gopinath (English)]
"The major downside risk to the outlook is heightened trade tensions and geopolitical tensions. This could derail an already fragile recovery that we're projecting for emerging markets and developing economies...." 

The fund projected the world economy to grow three-point-four percent next year, also down from its previous forecasts, stressing that if the U.S. and China resolve their trade conflict and restore bilateral trust, it could help with recovery.

[Sound bite: IMF Chief Economist Gita Gopinath (English)]
"So, to rejuvenate growth policymakers should unwind the trade barriers and reduce geopolitical tensions. Monetary policy should remain accommodative, but it cannot be the only game in town. Fiscal policy also should play a role, especially in countries that have fiscal space.” 

The IMF forecast that the American economy will experience slight growth while eurozone countries and China experience a drop and slight decrease in growth, respectively.
Bae Joo-yon, KBS World Radio News.

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