IMF projects Korea¡¯s GDP growth at 8.8%

The International Monetary Fund estimated that Korea¡¯s economic recovery will continue throughout this year, thus registering a year-end gross domestic product growth of 8.8%. This figure was slightly higher than its earlier projection of 7.0% made in April. In addition, it forecast the GDP growth for next year at 6.5%, a little bit down from this year¡¯s projection.

In a report on the world economic outlook released Tuesday, the IMF announced that the nation¡¯s GDP growth this year will be higher than its earlier expectation.

Meanwhile, the IMF projected Korea¡¯s price growth and jobless rate at 2.2% and 4.2%, respectively, for this year. Noting that it is timely that the country is shifting its policy predisposition to neutral in a move to head off inflationary pressure, the report stressed that Korea is required to restore the market confidence through continued restructuring to enable sustainable economic growth.

The report also added that despite an accelerating upbeat mood in the global economy, a chance of a hard landing cannot be ruled out, with high oil prices and sharply cooling economic growth in the United States.