IMF Maintains 2.3% Growth Outlook for South Korea in 2024

IMF maintains 2.3% growth forecast for S. Korea in 2024, citing export rebound, despite global economic challenges. Experts discuss S. Korean won's decline and economic outlook.

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IMF Maintains 2.3% Growth Outlook for South Korea in 2024

IMF Maintains 2.3% Growth Outlook for South Korea in 2024

The International Monetary Fund (IMF) has kept its growth forecast for South Korea in 2024 unchanged at 2.3%, according to its latest economic outlook report. This projection is higher than the estimates provided by the South Korean government, the Bank of Korea (BOK), and other international organizations such as the Organization for Economic Cooperation and Development (OECD) and the Asian Development Bank (ADB).

The IMF's outlook for South Korea's economy in 2024 remains optimistic despite the challenges faced by the global economy. The organization attributes its steady forecast to South Korea's export rebound, which has been driving the country's economic recovery. South Korea's exports increased for the sixth consecutive month in March, while imports decreased, resulting in a trade surplus for 10 straight months.

The Ministry of Economy and Finance noted that the IMF's economic outlook for South Korea is 'at a high level' compared to many advanced economies. The IMF also maintained its growth forecast for South Korea in 2025 at 2.3%, indicating a stable economic trajectory for the country in the coming years.

However, the South Korean won has recently sunk to a 17-month low, with the currency hitting 1,400 against the U.S. dollar. This development has raised concerns among experts, who discussed the economic challenges facing South Korea at the annual Foreign Investors' Chamber of Commerce in Korea (FKCCI) forum.

The IMF expects South Korea's consumer prices to rise 2.5% this year before falling to 2.0% in 2025. The organization also revised up its global growth forecast for this year by 0.1 percentage point to 3.2%, citing the global economy's resilience despite gloomy predictions.

Why this matters: The IMF's maintained growth outlook for South Korea in 2024 and 2025 reflects the country's economic resilience and its potential to weather global challenges. As a major player in the global economy, South Korea's economic performance has far-reaching implications for international trade and investment.

The South Korean government and central bank have expressed their commitment to implementing policies that support economic growth and stability. The Ministry of Economy and Finance stated that it will continue to monitor global economic trends and take appropriate measures to mitigate any potential risks to the country's economy.

Key Takeaways

  • IMF keeps 2024 growth forecast for South Korea at 2.3%, higher than other estimates.
  • IMF cites South Korea's export rebound as driving economic recovery, despite global challenges.
  • South Korean won hits 17-month low against U.S. dollar, raising economic concerns.
  • IMF revises up global growth forecast for 2023 to 3.2%, citing economic resilience.
  • South Korean government committed to policies supporting growth and stability amid global trends.