IMF upgrades S. Korea's 2010 growth outlook to 6.1 percent

The International Monetary Fund (IMF) on Thursday revised up the growth for South Korea's economy in 2010, raising the rate from 5.75 percent to 6.1 percent, thanks to the government's stimulus packages and an economic recovery.

According to Seoul's finance ministry, the IMF, in its latest report, presented an optimistic view on the South Korean economy, highlighting Seoul's stimulus-oriented macroeconomic policies since 2008 as the main driver.

The latest figure was higher than the growth outlooks presented by the Ministry of Strategy and Finance and the Bank of Korea (BOK) , 5.8 percent and 5.9 percent, respectively.

The IMF report was made as a result of its annual meeting held in June and July, according to which South Korea will likely see greater capital inflows from overseas countries.

According to the report, South Korea will continue to see a rise in exports, with the trade surplus expected to reach 4 billion U.S. dollars, while its foreign reserve climbing to 274 billion U.S. dollars.

South Korea's economy, however, is expected to slow down in growth in 2011, likely to post a 4.5 percent, the IMF said.

In the meantime, other major global investment banks have predicted the South Korean economy will expand an average of around 6 percent, with Goldman Sachs forecasting a 5.3 percent growth.

Source:Xinhua