SEOUL: Good weather helped North Korea's economy grow 3.7 percent in 2001, as the impoverished country attempts to ride out a prolonged food crisis, South Korea's central bank said Tuesday.

This marked the third consecutive year of growth in the north's gross domestic product (GDP), which expanded 6.2 percent in 1999 and 1.3 percent in 2000, the south's central Bank of Korea said.

The north's agriculture and fishery sector staged a dramatic turnaround from a 1.9 percent contraction in 2000 to grow 6.8 percent in 2001, it said.

Food supplies temporarily improved last year -- though aid groups say a new crisis is looming. The country remains reliant on international aid, with an acute energy shortage placing new strain on North Korea's ability to provide food and drinking water.--AFP

Taiwan-economy Taiwan to raise GDP forecast to 2.7% JP/TAIWAN

TAIPEI: Taiwan was expected to raise its 2002 gross domestic product (GDP) forecast to 2.7 percent amid signs of an economic recovery, the Economic Daily News reported Tuesday.

The Directorate General of Budget, Accounting and Statistics was set Friday to revise upward its 2.29 percent projection made in February, the paper cited Council for Economic Planning and Development vice chairwoman Ho Mei-yueh as saying.

Taiwan's economic growth suffered the first ever yearly decline of 1.9 percent in 2001 amid shrinking overseas demand and less domestic investment.

The revision came as the country's industrial output and exports started to show signs of improvement in March and April, the paper said.

Industrial output grew 1.5 percent year-on-year in March while outward shipments in April edged up 0.3 percent, snapping a 13- month decline.

Local think-tanks expect the island's 2002 GDP growth to come in at 2.6-3.0 percent, and some economists have predicted the growth would exceed 3.0 percent.

IMF sees S.Korean growth up to 5.75 % JP/

SEOUL: The International Monetary Fund (IMF) sees better-than- expected growth of up to 5.75 percent for South Korea this year, a senior official said on Tuesday.

This is up from the five percent forecast set in mid-April.

Charles Adams, assistant director for IMF's Asia and Pacific region, told reporters that given the economic statistics in April, growth could be faster than forecast earlier, rising as high as 5.75 percent.

However, risks still remain because of oil prices and a recovery in the technology sector, he said.

The new estimate is in line with the central Bank of Korea's 5.7 percent growth target.Reuters