Anchor: The International Monetary Fund(IMF) readjusted its forecast for the global economy this year. While slashing its growth outlook by point-two percentage points to three-point-four percent, the IMF expressed increasing worries on emerging markets in particular.
Our Andrew Jeong has more.
 
Report: The International Monetary Fund(IMF) forecast the world economy would grow by three-point-four percent this year. This is zero-point-two percent lower than the forecast from three months ago.
 
IMF top economist Maurice Obstfeld said emerging markets were responsible for the increased worries due to geopolitical challenges and low commodity prices.
 
[Sound bite: Maurice Obstfeld, IMF chief economist (English)]
“We may be in for a bumpy ride this year, especially in the emerging and developing economies.”
 
The IMF forecast developed countries would grow by two-point-one percent, zero-point-one percent lower than three months ago. It also cut its growth predictions for emerging markets by zero-point-two percent in the same period to four-point-three percent.
 
As for the factors that are dimming this year's economic outlook, the IMF cited uncertainties over China’s restructuring of its economy, falling oil prices and U.S. interest rate hikes. The Washington-based body also warned against a possible backfiring from China devaluing its currency to boost exports.
   
The IMF also urged developed nations to continue monetary easing policies, apparently criticizing the U.S. Fed’s decision to raise interest rates.
 
The organization encouraged countries to mix policies aimed at boosting demand and those designed to restructure economies.
 
South Korea’s government and its central bank had predicted growth rates of three-point-one percent and three percent, respectively, for the nation.
 
However, some experts cast doubt on growth forecasts for the country.
 
The LG Economic Research Institute also predicted difficulty for export-dependent South Korea to reach the three-percent growth level, citing falling global trade volume and dampening demand in China, which is South Korea’s largest export market.
 
The think tank added that rising corporate and household debts, and expectations of fewer new jobs would add to South Korea’s economic woes.
Andrew Jeong, KBS World Radio News.