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The International Monetary Fund on Monday said Korea's economy would shrink 4 percent this year but rebound to positive 4.2 percent in 2010, the fastest rate of recovery forecast among the G20. In its economic outlook for G20 countries, the IMF said Korea's economy would see full-fledged recovery in the second half of this year and solid growth next year.
The IMF forecast Korea's economy to contract 5.1 percent on-year in the first quarter, 5.9 percent in the second quarter and 5.7 percent in the third, returning to positive growth of 0.9 percent in the final quarter.
The growth forecast for next year is the third highest among the G20 following China (8 percent) and India (6.5 percent). In contrast, the economies of the United States (1.6 percent growth), Japan (0.6 percent) and the Eurozone (0.2 percent) are expected to barely put their heads above the parapet.
The reason the IMF forecast such a speedy recovery for Korea is its dependence on exports. During a global economic slump like this one, exports plummet while domestic spending remains weak. But when the global economy improves, export-dependent countries could see their economy grow at a faster rate than other countries.
(englishnews@chosun.com )
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