The International Monetary Fund (IMF) has increased its 2009 economic growth forecast for Korea by the largest amount among G20 nations. According to the Finance Ministry, the IMF predicted in its October report on global economic prospects that the Korean economy will contract by just 1 percent this year and grow by 3.6 percent next year.

This is an improvement of 2 percentage points and 1.1 percentage points, respectively, compared to the fund's predictions just three months earlier. In its July report the Washington-based organization projected that the Korean economy would shrink 3 percent in 2009 and grow 2.5 percent in 2010.

The boost in the adjusted growth prediction for Korea was the highest during the three-month period among G20 nations, followed by Australia and China. And Korea's economic forecast for next year rose by the second highest level among the 20 economies, just behind Turkey.

The OECD also had some encouraging news, saying that Korea's composite leading indicators (CLI) stood at over 100 for the second straight month in September.

A CLI index measures the microeconomic cycles of an economy and is used to give an early indication of economic turning points four to six months in advance. An index above 100 suggests an economic expansion, whereas an index below 100 means economic contraction.

Korea's September CLI predicts an expansion in the first quarter of next year. Other countries with a CLI index of over 100 in September were Italy, Mexico, Finland and France.