By Kim Yon-se
Staff Reporter

The International Monetary Fund (IMF) on Thursday reported the South Korean economy will grow 5.5 percent this year.

It also predicted the world’s 12th largest economy will post a current account surplus of $9.5 billion for the year, with consumer prices rising by 3.7 percent.

In its World Economic Outlook report, the IMF said the government should continue to carry out fiscal and monetary policies that can offset weakness in the domestic economy.

The international organization also called for stricter supervision of consumer loans by the nation’s financial system and improvements in corporate governance structures as well as enhanced flexibility in the labor market.

In 2005, Korea will see the growth rate reach 5.3 percent, with inflation and unemployment edging down from the 2004 figures to 3.4 percent and 3.2 percent, respectively, the IMF forecast.

It added the outlook for the world economy had brightened in the last six months and was now among the rosiest in 10 years.

The U.S. economy was tipped to grow 4.6 percent this year and 3.9 percent in 2005 while China, Australia’s fastest-growing export market, would steam ahead at 8.5 per cent this year and 8.0 percent next.

’’The outlook for the world economy is among the rosiest we have seen in a decade,’’ the IMF noted.

kys@koreatimes.co.kr