[Captured news] "Exchange rate is not a problem"...IMF Warns South Korea With Worst Open

The IMF Korea Mission, which examined the overall economic situation in Korea for two weeks from the 7th, cited external uncertainties in the Korean economy.

The IMF mission lowered its forecast for our economic growth next year by 0.2 percentage points from 2.2% to 2% in a month.

The risk is said to be on the higher side of downside risk.

Analysts say that external uncertainties have increased, including the launch of the second Trump administration next year, prolonged Russia-Ukraine war, and geopolitical risks in the Middle East.

This year's growth forecast was lowered by 0.3 percentage points from 2.5% to 2.2%.

[Rahul Anand / IMF Head of South Korea Mission: South Korea's economic growth rate in 2024 is partially offset by weak recovery in domestic demand, but is expected to reach 2.2% on the back of strong semiconductor exports. Real GDP is expected to grow by 2.0% in 2025 as economic growth converges to potential growth and the output gap narrows.]

{Trump Trade} did not see exchange rate volatility as a "challenging factor," he said, drawing the line that it was not a "challenging factor."

Inflation is approaching the BOK's target of 2 percent, but it recommended that a gradual monetary policy normalization seems appropriate given the high uncertainty.

It is interpreted as an order for a gradual rate cut that eases monetary policy.

The IMF's South Korean mission advised that a more aggressive fiscal stance is needed to create room to cope with long-term spending pressures such as aging.

It also said strong economic policies, including mid- to long-term economic reforms, are needed for sustainable growth.

Comprehensive reforms are needed to cope with the decline in the workforce, and to this end, we called for efforts to ease economic constraints that hinder the fertility rate, increase women's participation in economic activities, and attract foreign talent.

This is YTN Oh In-seok.

a photographer | Ko Min-cheol
video editing|Jung Kook-yoon
subtitle news|This line

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