IMF cuts 2014 growth forecast for Korea to 3.7%
The International Monetary Fund
cut its growth forecast for Korea for next year to 3.7 percent, down zero.2 percentage points from its earlier forecast.
This, however, is greater than the 2.8 percent growth outlook for this year.
The IMF report suggests that Korea will be able to maintain its gradual pace of recovery in 2014, and cited the central bank's recent rate cut and supplementary fiscal spending as the reason.
Data in this month's report by the Ministry of Strategy and Finance on the latest economic conditions in Korea also points to the strong prospects of a sustained recovery.
"The IMF revising down the growth outlook means the pace of recovery is weaker than expected. The trend of economic growth remains firm."
The report says major economic indicators, including consumption, investment and output, are showing signs of improvement amid stable employment and inflation figures.
Korea's industrial output grew one.8 percent in August from a month earlier -- the fastest pace in nine months on strong automobile and mobile phone production.
There were more than 25 million people at work in August, up more than 430-thousand from a year earlier -- the largest on-year job growth in 11 months.
"The finance ministry added, however, that weak activity in the private sector and external risks coming from the U.S. budget standoff and the Federal Reserve's planned bond-buying stimulus tapering could have a negative impact on the economy.
Hwang Ji-hye, Arirang News."
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