SEOUL, July 6 (Yonhap) — South Korea’s economy will likely rebound to grow 3 percent in 2021 after contracting 2.1 percent this year in the face of the coronavirus pandemic, an IMF economist said Monday.
Asian countries are expected to post 1.6 percent negative growth for the first time in history as the COVID-19 pandemic continues to weigh on demand and exports, but they will rebound to growth of 6.6 percent next year, Angana Banerji, senior economist at the International Monetary Fund, said in a webinar hosted by the Federation of Korean Industries (FKI).
“Asia is in different stages of the pandemic, and policy support will need to continue or increase in some cases. Asia’s recovery has started, but it will be protracted. All Asian countries need to accelerate structural reforms to adapt to the new post-virus environment and address policy gaps exposed by the pandemic,” she said.
The IMF forecast that the global economy will contract 4.6 percent this year but will grow 5.4 percent next year.
FKI Vice Chairman Kwon Tae-shin said Korean exporters may face a liquidity crisis from October due to sharply declining exports if the coronavirus pandemic prolongs throughout the year.