IMF: ‘Korea’s growth rate to stay at 2% this year’

The International Monetary Fund (IMF) has maintained its forecast for Korea’s economic growth rate this year, unchanged from last month. However, it warned that prolonged domestic political uncertainty and potential policy shifts under the Donald Trump administration could lower the growth rate.

According to the Ministry of Economy and Finance on Friday, the IMF released its 2024 Annual Consultation Report on Korea, reaffirming its 2.0% growth projection. In its World Economic Outlook published on Jan. 17, the IMF had also projected 2.0% growth for Korea, keeping the same outlook despite the impact of martial law and impeachment. This forecast is slightly higher than the Korean government’s estimate of 1.8%, with strong exports, private consumption, and a gradual recovery in investment cited as key drivers.

However, the IMF cautioned that Korea’s economy still faces significant uncertainty. If political instability continues and U.S. policy shifts intensify, achieving 2% growth could become challenging. Additionally, weak global demand for semiconductors and sluggish economies in major trading partners, including China, pose risks to Korea’s economic performance. The IMF also warned that prolonged political uncertainty could dampen investment, weaken consumer confidence, and increase financial market volatility.


세종=송혜미 기자 1am@donga.com