imf urges south korea to act against downside risks
Last Updated : GMT 10:03:45
Arab Today, arab today
Arab Today, arab today

IMF urges South Korea to act against downside risks

Arab Today, arab today

Arab Today, arab today IMF urges South Korea to act against downside risks

The International Monetary Fund
Seoul - QNA

The International Monetary Fund (IMF) has urged South Korea to act against what it describes as a "self-reinforcing downside dynamic," since Asia's fourth-largest economy has room for additional monetary and fiscal measures to reduce downside risks.
"There is the risk that a self-reinforcing downside dynamic could take hold ... The likelihood of this scenario may not be high, but the costs could be significant. The authorities have monetary and fiscal policy space to take action if clear signs of a recovery do not emerge soon," Brian Aitken, who spearheaded the international agency's annual consultations with South Korea, said in a news conference on Friday.
The IMF's seven-member team visited the country from Feb. 2-13 to hold meetings with officials from the finance ministry and the Bank of Korea to discuss Asia's fourth-largest economy.
The Washington D.C.-based organization cut its growth forecast for the country to 3.7 percent from 4 percent last week, without providing details.
"We urge them to use that policy space if needed to avoid the sort of scenario we described, of self-reinforcing low inflation, low growth environment, which we've known from past experience is a very difficult dynamic to break out of once you get into it." The visiting IMF official, however, stressed that such a scenario does not always translate into deflation.
"We're not necessarily talking about outright deflation. A downside scenario could be a prolonged period of low inflation as well," he was quoted by South Korean Yonahp news agency as saying.
The recommendation comes as South Korea finds itself squeezed between the U.S. Federal Reserve's rate normalization trend and a global wave of monetary easing, while juggling economic woes, both structural and cyclical, such as rapid aging and slowing exports.
Aitken said that the 3.7 percent forecast is "still feasible," but hinted at chances of a revision by noting the outlook was made before the country's downbeat fourth-quarter growth data was released.
South Korea grew 0.4 percent in the October-December period, sharply decelerating from 0.9 percent growth three months earlier and posting the slowest growth in over two years, according to central bank data released late last month.
He also stressed uncertainties in the growth forecast, saying it is premature to assess the impact of Seoul's recent fiscal and monetary moves, such as the two rounds of rate cuts aimed at spurring growth.
"It's too early to gauge their full impact on the economy, and then you add to that the uncertain elements of the global economy. It is very difficult to know at this point what the headline 2015 number will be." South Korea's central bank cut its base rate by two times last year to a record low of 2 percent in October, in order to support the government's stimulus efforts.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

imf urges south korea to act against downside risks imf urges south korea to act against downside risks

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

imf urges south korea to act against downside risks imf urges south korea to act against downside risks

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 09:12 2017 Thursday ,23 November

4 in 10 cancers due to modifiable risk

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday