orean Economy to Grow 5% in 2006: IMF South Korea’s economy is expected to grow 5 percent next year, far higher than the 3.8 percent projected for this year, the International Monetary Fund (IMF) said.
It said steadily recovering private consumption and corporate investment will allow the country to recover a stronger growth next year.
Low interest rates have helped to lift consumption by reducing household debt burdens, it said. In recommending macroeconomic priorities, the report said tasks for South Korea would be ``further trade liberalization and rationalization of the regulatory environment.’’
Still, it said higher oil prices will put a damper on its recovery.
The IMF cut its forecast for the country’s growth rate to 3.8 percent from the initial projection of 4 percent in its semiannual World Economic Outlook report released on Wednesday. The Bank of Korea also expects gross domestic product to grow 3.8 percent this year.
# Koreatimes.
- Sep. 23, 2005
- By Choi Kyong-ae
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