September 21, 2012 11:31
The International Monetary Fund has cut its 2012 growth forecast for Korea by 0.25 percentage point to 3 percent. The latest revision comes just three months after the IMF lowered the nation's growth outlook from 3.5 percent to 3.25 percent.
The global body identified the prolonged eurozone debt crisis as one of the main short-term threats to growth. This, as spillover effects from troubles in Europe, the United States and China, Korea's key export markets, are bound have a substantial impact on the trade-dependent economy.
While Korea's exports are expected to expand less than 6 percent this year, the agency forecasts the figure will nearly double next year in light of improving global economic conditions. The IMF said Korea's vulnerability to external shocks has eased, thanks to various measures taken by the government to strengthen the country's financial system.
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