November 02, 2010 11:08
Korea has been categorized as an advanced country with a current account surplus among the Group of 20 member countries.
A report released recently by the International Monetary Fund divided the G20 economies into five different groups based on each nation's current account balance and economic status.
The classification will free Korea from any disadvantages that could result from the guidelines for current account balances that the G20 finance chiefs have agreed to establish at the Seoul Summit. Canada and Japan were listed in the same category as Korea.
Argentina, China and Indonesia were classified as emerging markets with current account surpluses, while the U.K. and the U.S. were listed as advanced deficit economies. The nations in these two categories are expected to be the major targets of the policy recommendations related to current account figures at the November meeting.
The IMF pointed out that advanced deficit countries should increase exports while emerging surplus economies should reduce outbound shipments in order to resolve the issue of global imbalances. It added that many emerging markets should appreciate their currencies by a significant amount to reach this goal.
Meanwhile, Russia and Saudi Arabia were placed in the category of large oil exporters while Brazil, India and Mexico were labeled as emerging deficit countries.
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