Asia Pacific Director, ADB Annual Meeting Meeting
“Korean foreign exchange reserves, 25% of GDP is sufficient
Monetary policy should not be loosened prematurely
The International Monetary Fund (IMF) assessed that if the government’s fiscal rules are legislated, confidence in the Korean economy will increase.
On the 4th, IMF Asia Pacific Director Krishna Srinivasan (pictured) made this announcement at the Asian Development Bank (ADB) annual meeting press conference held in Songdo, Incheon on the 4th. In response to reporters’ questions about the introduction of fiscal rules, Director Srinivasan said, “Considering Korea’s aging problem, it is necessary to expand fiscal capacity.” The level of trust in the Korean economy will increase.” The government has submitted a bill to introduce fiscal rules to keep the managed fiscal deficit within 3 percent of gross domestic product (GDP), but it has yet to cross the threshold of the National Assembly.
Director Srinivasan also advised, “The financial support measures that were promoted during the pandemic should be gradually reduced. Director Srinivasan also evaluated, “Korea’s foreign exchange reserves are sufficient as they account for 25% of its gross domestic product (GDP).”
The IMF advised that Korea’s monetary policy should focus on price stability. “Korea’s inflation rate has fallen to 3.7%, but it is above the target of 2%, and core inflation is still around 4%,” he said. “We should not hastily ease monetary policy.”
Director Srinivasan said, “The slowdown in Korea’s economic growth in recent quarters is due to the slowdown in growth of trading partners and the global semiconductor slump affecting exports. Demand for imports will also increase due to the effect of the opening (resumption of economic activity),” he predicted. In its World Economic Outlook report last month, the IMF suggested Korea’s economic growth rate at 1.5 percent this year and 2.4 percent next year.
Meanwhile, at a conference held as one of the ADB programs that day, Louis Kersey, chief economist for Standard & Poor’s (S&P) Asia-Pacific region, predicted, “The Asia-Pacific region’s economic growth rate excluding China will stop at 3.8% this year due to the slowdown in growth due to the global economic contraction.”
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.