S. Korea's fiscal status remains better than other major nations: IMF

SEOUL, June 17 (Yonhap) -- South Korea's fiscal status remains in better shape than many other major countries thanks to its efforts to enhance fiscal soundness following the global financial crisis, a report by the International Monetary Fund showed Friday.
Revenue growth from continued economic recovery, withdrawal of stimulus measures introduced during the crisis, and effective control of government expenditures were all cited as causes of the nation's improved overall fiscal health, according to the report by the Washington-based lender.
The IMF published the report in April to review the fiscal status of its member countries. South Korea's finance ministry delivered a translated excerpt of the report to journalists on Friday.
The report comes amid growing anxiety over the debt crisis stemming from European countries including Greece and in the wake of the global financial crisis in late 2008 coupled with a worldwide economic downturn.
South Korea joined the world in curbing its spending in a way that keeps its fiscal status in good shape during its faster-than-expected economic recovery.
Based on its assessment, the IMF report expected that the ratio of South Korea's national debt to its gross domestic product will decline to 28.8 percent this year from 30.9 a year earlier.
But the IMF still emphasized that the Korean government should continue its efforts to brace for longer-term fiscal risks stemming from the country's low birth rates and fast-aging population in its fiscal management.
Meanwhile, the Organization for Economic Cooperation and Development also said in a recent report that fiscal improvement is underway in South Korea in accordance with its fiscal management plan.
kokobj@yna.co.kr