IMF praises Korea, urges further work

The International Monetary Fund enthusiastically says that the Korean government successfully overcame 1997`s financial crisis and economic slump, while pointing out that the Korean economy needs to complete financial and corporate restructuring in order to maintain the current pace of rapid growth and reduce its vulnerability to external shock.

The IMF noted that there wouldn`t be any further inspections by the board of directors regarding the Korean program, declaring that Korea has graduated from the IMF program.

Stanley Fisher, deputy director of the IMF, said that the board of directors complimented the Korean authorities on the nation¡¯s impressive recovery from a serious economic slump following the nation`s financial crisis. He indicated that the feat was achieved through complicated factors such as economy-boosting macroeconomic policy, freeing the exchange rate, massive structural reform, smooth external circumstances, a strong economic policy and an increase in foreign exchange reserve.

Fisher anticipated that Korea`s short-term economic outlook calls for 8.5% GDP growth in 2000 and that the Korean economy shows signs of a slowdown to a sustainable pace while curbing inflation.