IMF raises S. Korea’s growth forecast to 2.5%

The International Monetary Fund (IMF) has raised its forecast for South Korea's economic growth to 2.5 percent this year, apparently driven by the "surprise growth" in the first quarter and improving export performance.

In its World Economic Outlook report released on Tuesday, the IMF projected South Korea's economic growth this year at 2.5 percent, an increase of 0.2 percentage points from three months ago. This forecast is 0.1 percentage point lower than the 2.6 percent forecast by the government and the Organisation for Economic Co-operation and Development (OECD), but matches the projection of the Bank of Korea.

Although the IMF did not specify the reasons for the upward revision, the South Korean government analyzed that the slightly upward adjustment of the growth forecast was driven by a stronger semiconductor industry. "South Korea's economic growth exceeded expectations at 1.3 percent in the first quarter, and the recent improvement in export performance, particularly in semiconductors, is likely reflected in these factors," said an official at the Ministry of Economy and Finance.


세종=소설희 기자 facthee@donga.com