IMF LOWERS S.KOREA'S ECONOMIC GROWTH FORECAST

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The International Monetary Fund has again lowered its economic growth forecast for South Korea for this year. But the revised growth prediction is still higher than that for advanced economies. The South Korean government says that it is attributable to its effective handling of the cornonavirus.

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​The IMF again cut this year's economic growth forecast for South Korea to minus 2.1 percent. That's down Point-nine percentage points from its April projection of minus 1.2. The revised growth outlook is still the highest among advanced economies. The agency predicts the U.S. will post a growth of minus eight percent, Japan minus 5.8 and the Euro zone minus 10.2 percent. Categorized as a developing country, China is forecast to grow one percent. Seoul's government pointed out, that among advanced countries, South Korea is the only one predicted to see its GDP recover to the pre-COVID-19 level by the end of next year. A Finance Ministry official attributed the relatively positive forecast to the government's effective handling of the pandemic. As for the global economy, the IMF lowered its growth forecast for this year by 1.9 percentage points to minus 4.9. Regarding the current economic situation, the organization assessed GDP was more sluggish than expected in Q1 and will likely further contract in the second quarter. It believes South Korea can grow three percent and the global economy 5.4 percent next year. In order to overcome the economic crisis caused by the COVID-19 pandemic, the IMF said countries need to increase healthcare spending and provide active support for hard-hit sectors, while strengthening international cooperation to ease trade tension.