IMF Affirms South Korea’s Monetary and Budgetary Tightening Policies

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The International Monetary Fund (IMF) has expressed its approval of South Korea’s recent restrictive monetary and budget policies, according to the Ministry of Economy and Finance. During a virtual meeting between the IMF and the South Korean government, Harald Finger, the Korea missions chief at the Washington-based organization, declared the measures to be “the right set of policies” and advised the Asian nation to maintain its current stance.

The 2024 budget plan proposed by South Korea’s finance ministry was given a “positive assessment” by Finger, who suggested the country should take steps to adopt a fiscal rule. He also commented that the nation’s economy was likely to pick up speed in the second half of 2023, thanks to the improving chip cycle, and praised the government for its successful efforts to stabilize property costs and provide tax relief.

In July, the IMF predicted a 1.4 percent economic growth for South Korea in 2023, a 0.1 percentage point decrease from its April forecast.

Finance Minister Choo Kyung-ho speaks during a virtual meeting with the International Monetary Fund in Seoul on Sept. 5, 2023, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)

Finance Minister Choo Kyung-ho speaks during a virtual meeting with the International Monetary Fund in Seoul on Sept. 5, 2023, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap)

During the meeting, Choo Kyung-ho noted that the government would continue to strive to stabilize consumer prices and support the private sector in order to foster an economic recovery in the second half of 2023.

colin@yna.co.kr
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