Hong Nam-ki: "IMF's Downward Revision of Korea's Growth Rate Not Significant... Reaffirms 'Positive Outlook'"

[Sejong=Asia Economy Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 25th that the International Monetary Fund (IMF) downgraded South Korea's economic growth forecast for this year, but "compared to major countries, the adjustment range for our economy is not large," adding, "The achievements of our economy shown during the COVID-19 recovery process, the favorable consumption and current account balance, and the recent supplementary budget (추경) formulation seem to have played a positive role."

Deputy Prime Minister Hong said through his social media immediately after the IMF released its 'World Economic Outlook' report, "Following last year, the IMF's positive view of the Korean economy is confirmed again in this forecast."

The IMF forecast South Korea's economic growth rate at 3.0% this year, a 0.3% downward revision from the October forecast last year (3.3%). The growth rate for next year was revised upward by 0.1 percentage points from the previous forecast (2.8%) to 2.9%.

Regarding this, Deputy Prime Minister Hong said, "At the conclusion of the annual consultation with Korea today, the IMF mission team, with whom we held a video conference, evaluated that 'Korea is the first advanced country to successfully overcome the COVID-19 shock,'" adding, "Considering the atmosphere of a bilateral meeting, such an evaluation by the IMF is exceptional."

He also stated that the IMF mission team evaluated that despite the COVID-19 crisis, Korea achieved successful economic responses, income growth, and financial stability, and that it was successful in recovery through resilient responses despite global supply chain disruptions.

Deputy Prime Minister Hong said, "This World Economic Outlook underwent repeated revisions until just before its release," adding, "The public release schedule was delayed by more than a week to reflect the impact of Omicron, and the forecast figures were continuously revised until the last moment." He added, "This means that the global economy this year is exposed to significant downside risks and volatility, making predictions difficult."

Furthermore, he said, "We cannot be an exception to these risk factors," and pledged, "Based on our crisis response capabilities demonstrated so far, we will make every policy effort to ensure that the differentiated performance of the Korean economy continues."