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IMF Keeps S. Korean Growth Forecast at 2.3% amid 'Slow but Steady' Global Outlook

Written: 2024-04-17 15:08:15Updated: 2024-04-17 16:00:56

IMF Keeps S. Korean Growth Forecast at 2.3% amid 'Slow but Steady' Global Outlook


Anchor: The International Monetary Fund(IMF) forecast the global economy to grow three-point-two percent this year, an upward revision of three-tenths of a percentage point from its October projections for 2024. While warning of global challenges in the future, the IMF maintained its growth outlook for South Korea at two-point-three percent for this year.
Kim Bum-soo has more.

Report: The International Monetary Fund(IMF) has forecast slow but steady growth this year while warning of lingering geopolitical and inflationary challenges down the road.

In a press briefing in Washington D.C. on Tuesday, IMF Chief Economist Pierre-Olivier Gourinchas and other key officials introduced the latest outlook.
[Sound bite: IMF Chief Economist Pierre-Olivier Gourinchas]
“The global economy continues to display remarkable resilience, with growth holding steady and inflation declining. But many challenges still lie ahead. Global growth was three-point-two percent in 2023 and is expected to remain at that level, both in 2024 and 2025. This represents a zero-point-three percentage point upgrade from our October projections for 2024, with stronger activity than expected in the U.S., China and other large emerging markets. But weaker activity in the Euro-area.”

The chief economist suggested, however, that a potential escalation of the instability in the Middle East can limit growth, sparking oil price hikes and inflation. 

[Sound bite: IMF Chief Economist Pierre-Olivier Gourinchas]  
“Oil prices have been rising in part due to geopolitical tensions. And services inflation remains stubbornly high in many countries. Further trade restrictions could also push up goods inflation. Bringing inflation back to target should remain the priority.”

On the back of resilience in major economies, the IMF maintained its growth outlook for South Korea at two-point-three percent for 2024 and 2025.

The figure is higher than the two-point-two percent growth projected by the Organization for Economic Cooperation and Development(OECD) and the South Korean government. The Bank of Korea projected two-point-one percent growth.  

The U.S. economy is forecast to grow two-point-seven percent this year, as the IMF sharply upgraded its outlook from the October forecast by zero-point-six percentage points in January and again by another zero-point-six percentage points this time.

The IMF kept its forecast for China’s economic growth at four-point-six percent for this year, declining from five-point-two percent the previous year, while projecting the world's second largest economy to slow down further to expand four-point-one percent in 2025.

European growth is expected to continue at a slower pace in the short term as the IMF forecast zero-point-eight percent growth for this year and one-point-five percent for 2025.
Kim Bum-soo, KBS World Radio News.

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