Uncertainty continues for the Korean economy… What is the IMF's growth forecast for this year? = Korean media

As the political situation under President Yoon continues to be unstable and the Korean economy remains uncertain, the International Monetary Fund (IMF) is expected to further lower its forecast for Korea's real gross domestic product (GDP) this year.
Previously, in its 2024 Consultation Report in November last year, the IMF revised its growth rate forecast for 2025 downward by 0.2 percentage points from the previous 2.2% to 2%.
The IMF reviews the overall economic situation of member countries and issues a report recommending policies. Every year, the IMF issues a world economic outlook for all member countries in April and October, and a report for the 30 major countries in January and July.
In addition, we may adjust our growth forecasts at the end of the annual period. In this January forecast, we will be taking into account the economic growth rate caused by the "civil war and impeachment political situation" that occurred in December last year.
Attention is focused on whether the forecast will reflect political uncertainty. If so, it may be lower than the previous forecast of 2%.
The Korean economy continues to be subject to political uncertainty. However, volatility in the financial and foreign exchange markets has eased.
Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok, who is acting as the Prime Minister, said in his opening remarks at the “Conference on Solutions to Major Social Issues” held at the Government Seoul Complex on the 10th, “The Korean economy has recently been facing both domestic and international uncertainty.
"With the economy expanding, the risk of a downturn is growing, and people's lives are continuing to face difficulties," Choi said.
"Volatility in the financial and foreign exchange markets is gradually easing," he said. "(But) given the uncertainties both at home and abroad, the situation is still not reassuring," he said, adding that "agencies are on high alert."
He called on them to "maintain a vigilant watch over the financial and foreign exchange markets and make every effort to manage the economy as stably as possible."
Next week, in addition to the IMF's World Economic Outlook announcement on the 17th, the World Bank will also release its World Economic Outlook (Korea) on the 14th.
The Korea National Statistical Office will release a report on employment trends for December and the whole year on the 15th. According to the "November Employment Trends" released by the Korea National Statistical Office, the employment rate for people aged 15 and over was 63.2%.
This is a 0.1% increase from the previous year, and the highest November figure since statistics began in 1989. The economic participation rate also rose to 64.6%, also a November record high.
The trend of declining employment continues in industries closely related to domestic demand, such as construction, wholesale and retail, and manufacturing.