IMF Raises Korea's Growth Outlook on Improved Consumption

The International Monetary Fund on Tuesday projected this year's economic growth outlook for Korea at 2.6 percent, up 0.3 percentage points from an earlier forecast in July on the back of improved consumption as a result of eased lockdown. 

But the IMF lowered the country’s growth rate for next year from 2.1 percent to two percent. 

The Korean economy is hampered by its export dependency. Its trade deficit has already surpassed US$30 billion this year as the country faces growing import costs and exports show signs of flagging due to worldwide inflation and the soaring dollar.  

According to the Korea Customs Service on Tuesday, this year's trade deficit stood at $32.71 billion as of Monday, up $12 billion from the previous record of $20.62 billion in 1996. 

The won plummeted another W22.8 against the dollar on Tuesday to W1,435.20, the biggest daily drop in two years and seven months. The Korea Composite Stock Price Index dropped 1.83 percent to close below 2,200 points, while the junior Kosdaq plunged more than four percent. 

The IMF lowered the global growth outlook for next year from 2.9 percent in July to 2.7 percent, compared to this year’s outlook of 3.2 percent.