Imf, Seoul May Agree On Cutting Growth To 1%

South Korean state radio on Wednesday said Seoul and the International Monetary Fund agreed on revised macro-economic targets which would lower the country's gross domestic product (GDP) growth rate to one percent from the previous target of two percent.

A finance ministry spokesman could not confirm the report. The ministry earlier said an announcement on the revisions would be made on Friday. Korean Broadcasting System (KBS) said the dollar/won rate remained unchanged at 1,300 and inflation was unchanged at nine percent.

It said the current account surplus target was boosted to $5 billion from the previous $3 billion and said the IMF would allow a state budget deficit of 4.6 trillion won.

 

The unemployment rate would rise to 5 percent. Previous forecasts were at 3.7 percent.

The report said the new revisions would be submitted to the IMF board meeting on February 17. The targets are part of a prescription by the IMF in exchange for a near $60 billion bailout package for South Korea.