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Korean economy to grow 5.2% in 2006: IMF
May 4, 2005
The International Monetary Fund (IMF) expects South Korean economy to grow by 5.2 percent in 2006, following a 4 percent growth this year.
In its latest report on worldwide economic outlook, the global economic organization forecast that South Korea will post the strongest economic growth next year among Asian economies. It forecast that Korea's gross domestic product (GDP) growth will amount to 5.2 percent next year, ahead of Taiwan with 4.3 percent, Hong Kong with 4 percent and Singapore with 4.5 percent. China is expected to post an 8 percent growth in 2006, a setback from this year's 8.5 percent.
"The economy is now undergoing a period of adjustment and Korea will begin to see signs of a recovery this year," said Kenneth Kang, representative of the IMF office in Seoul. "Households have made progress in restructuring their debts, which has created room for them to start spending again," he said. "As households resume their spending, companies will begin to invest and the job market will improve."
He pointed out that Korea's growth potential remains high because of its strong economic fundamentals and proven capacity to change.