IMF "Strengthen Macroprudential Policies to Match Next Year's Economic Recovery Pace"

Senior Asia-Pacific Economist Presents at the 10th KIEP-IMF Conference

On the morning of the 25th, the 30th anniversary seminar performance of KIEP, which held the '10th KIEP-IMF Joint Conference on External Economic Policy'. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The International Monetary Fund (IMF) advised that while the Korean economy is expected to recover next year, macroprudential policies need to be strengthened.

Angana Banerjee, Senior Economist of the IMF Asia and Pacific Department, stated this during a keynote presentation at the "10th Korea Institute for International Economic Policy (KIEP)-IMF Joint Conference" held on the 25th at the Westin Chosun Hotel in Seoul.

Senior Economist Banerjee evaluated, "Korea was able to mitigate the negative impact of COVID-19 on economic growth through proactive testing and fiscal stimulus measures without implementing large-scale lockdown policies."

Earlier, the IMF raised its economic growth forecast for Korea this year from -2.1% to -1.9% in its economic outlook released last month. The growth forecast for Korea next year was presented at 2.9%, and the forecast for Asia was 6.9%.

She added, "Since the pandemic is still ongoing, it is necessary to strengthen macroprudential policies while continuing environmentally friendly and inclusive growth policies."

At the conference jointly hosted by KIEP and the IMF, researchers from both institutions discussed the global economic outlook for next year and prevention and recovery in the era of the COVID-19 pandemic.

Kim Heungjong, President of KIEP, emphasized in his opening remarks, "Whether global lockdown measures will be implemented in line with the spread of COVID-19 is expected to affect the world economy for some time," and stressed, "It is urgent to prepare response measures."