Korea Should Keep Easing Policy, Push for Structural Reform: IMF

Korea Should Keep Easing Policy, Push for Structural Reform: IMF

South Korea should maintain its accommodative fiscal and monetary policy settings to support the economic recovery, the International Monetary Fund said, warning that structural reforms are also essential to lift the nation’s longer-term growth prospects.

IMF sees South Korea growing 1.8% in 2026, calls for urgent structural reforms

The International Monetary Fund (IMF) expects South Korea’s economy to grow 0.9% this year and rebound to 1.8% in 2026, with inflation staying near the government’s 2% target, according to the Ministry of Economy and Finance. The IMF cited a gradual recovery in domestic demand supported by “accommodative” fiscal and monetary policy and resilient semiconductor […]

South Korea should keep easing policy, push for structural reform: IMF

While accommodative policies will help in the near term, longer-term challenges include weak productivity, a shrinking labour force and high household debt