The International Monetary Fund (IMF) predicts that the Korean economy will grow 3.1% this year. It is 0.2 percentage points higher than the 2.9% forecast for October last year. This is in line with expectations that global economic activity will recover with full-fledged vaccine supply this year.
Expectations for economic recovery through vaccine supply
The world economy rose from 5.2% to 5.5%
IMF forecasts Korea’s economic growth rate in 2021. Graphic = Younghee Kim [email protected]
In its report on the’World Economic Outlook Update’ released on the 26th, the IMF predicted that Korea will grow by 3.1% and 2.9% this year and next year, respectively. Last year’s growth rate was -1.1%. The Ministry of Strategy and Finance explained that “the combined growth rate in 2020 and 2021 is the highest at 2.0% among 11 developed countries for which IMF has announced its forecast.” Compared to 2019, before the new coronavirus infection (Corona 19) crisis, this year’s real gross domestic product (GDP) will recover the fastest in Korea.
The IMF’s forecast is lower than the 3.2% growth forecast proposed by the government this year. Major domestic and foreign institutions predicted that Korea will record a growth rate of around 3% this year.
Forecast of Korea’s economic growth rate in 2021. Graphic = Younghee Kim [email protected]
The IMF predicted that this year’s global economic growth rate will record 5.5%, 0.3 percentage points higher than last October’s forecast (5.2%). The evidence is that the vaccine, approved last year, started vaccination this year, and the growth engine is expected to be stronger than expected last year, and large-scale economic stimulus measures in major countries such as the US will support this. However, he pointed out concerns about the re-proliferation of the variant virus, additional containment measures, and delay in vaccine supply.
IMF World Economic Outlook. Graphic = Younghee Kim [email protected]
The global economic growth rate for next year is 4.2%, maintaining the previous forecast. This year, developed countries such as the United States and the Eurozone are expected to record 4.3% growth, 0.4 percentage points higher than the previous forecast.
Sejong = Reporter Seongbin Lim [email protected]