The International Monetary Fund lowered its growth forecast for the Korean economy from 3.0 percent to 2.6 percent. Ahead of the G20 Finance Ministers and Central Bank Governors Meeting slated to be held in Baden-Baden, Germany, from March 17 to 18, the IMF issued the "G20 surveillance report" on March 14.
In the report, the IMF presented such revised growth forecasts for the Korean economy. It also lowered the 2018 growth forecast for the Korean economy by 0.3 percentage point to 2.8 percent.
The IMF's revised 2017 growth forecast for the Korean economy is the same level with that of the Korean government but still higher than the Bank of Korea's 2.5 percent.
Changyong Rhee, the Director of the IMF's Asia and Pacific Department, said, "Korea's high level of household debts and the absence of presidential leadership result in sluggish domestic demand, leading to a decline in its economic growth rate."