IMF Paints Gloomier Outlook for Korea's Economy

The International Monetary Fund on Monday lowered its growth forecast for Korea next year, citing the economic slowdown in China and other factors.

The IMF projected Korea's economy to grow 2.2 percent, down from the previous forecast of 2.4 percent in July, but its projection for this year remains unchanged at 1.4 percent.

The IMF releases economic forecasts at the beginning of every quarter.

Globally, the IMF predicts economic growth of three percent this year. Japan's economy is expected to grow two percent, 0.6 percentage points higher than the forecast in July. If this holds true, it would be the first time in the 25 years since the Asian financial crisis that Japan's growth rate surpasses Korea's.

China's growth is expected to slow down to five percent this year, a decrease of 0.2 percentage point from the previous forecast, due to the country's real estate crisis and other factors. Its growth forecast for next year has also been adjusted downward by 0.3 percentage point to 4.2 percent.

As a result, the IMF reduced its global growth forecast for next year from three percent to 2.9 percent.