IMF downgrades S Korea's growth
The International Monetary Fund (IMF) changed it projection of the South Korea's economic growth for this year to 4.1 percent, down 0.1 percentage from its prediction five months ago, the South Korea's Yonhap new agency reported yesterday.
The IMF report attributed the downgrade to global financial turmoil, a growing trade deficit, rising commodity prices as well as the volatile domestic political environment.
"Risks are mainly external and on the downside, but a volatile domestic political environment also clouds the outlook," the report said, citing months of street rallies over US beef imports that struck Lee Myung-bak government.
"The administration's ability to implement its economic agenda, which aims to raise its potential growth, may be restricted in the immediate aftermath," the report said, adding "A fractious political environment exacerbates the uncertainty in the outlook."
Comments