Business News
IMF raises prediction for South Korean growth to 6.1 per cent
Sep 2, 2010, 9:39 GMT
Seoul - The International Monetary Fund raised its economic growth forecast for South Korea to 6.1 per cent this year, citing government stimulus measures, rising corporate investment, consumer demand and growing trade.
The forecast, released Thursday in South Korea and Wednesday at the IMF's Washington headquarters, rose from the 5.75-per-cent growth the IMF had predicted in July.
It also exceeded the predictions made by the Bank of Korea (5.9 per cent) and the South Korean government (5.8 per cent).
However, the IMF lowered its forecast for gross domestic product growth next year for Asia's fourth-largest economy to 4.5 per cent from July's 5 per cent prediction because of the government's withdrawal of stimulus funds and a projected rise in interest rates.
It also warned of global risks to South Korea's export-oriented economy, including economic weakening and continuing financial strains in other countries, particularly developed ones, which are leading consumers of South Korean goods.
The IMF advised South Korea to increase its domestic sources of growth so its economy would be less dependant on demand from abroad and less vulnerable to economic downturns in other countries.
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