The International Monetary Fund(IMF) marked down its economic forecast for South Korea for this year, citing the omicron spread and lowered growth projections for Seoul’s major trade partners among other factors. 

The Ministry of Economy and Finance said that in the revised global outlook released on Tuesday, the IMF projected Asia’s fourth largest economy will grow three percent in 2022, down by zero-point-three percentage points from its earlier forecast in October. 

The IMF’s latest outlook is one-tenth of a percentage point lower than the government’s projection but is the same as those from the Organization for Economic Cooperation and Development(OECD), Bank of Korea, and an average of major investment banks. 

Noting that the revision is moderate compared to the one-point-two percentage points and zero-point-eight percentage point cuts for the U.S. and China, respectively, the ministry attributed it to South Korea’s robust current account and consumption levels and its expansionary fiscal policies. 

The IMF, meanwhile, raised its 2023 outlook for the nation to two-point-nine percent, up by zero-point-one percentage point from October.