Every other advanced economy has had its growth predictions for this year revised upwards and the United Kingdom is now predicted to grow more slowly than the Euro Area, which is forecast to see 2.1 per cent growth in 2017.
The IMF overturned a summer downgrade to forecast the USA economy would now grow by 2.2% this year, with total world growth expectations rising 0.1% to 3.6% as a "global cyclical upswing" continued.
Releasing the report in Washington, IMF Research Director Maurice Obstfeld said: "The global recovery is continuing, and at a faster pace".
The fund expects China's economy to expand by 6.8 per cent this year, up from its previous estimate of 6.7 per cent, due to stronger recorded growth in the first half. Forecasts for eurozone, Japan, China, emerging markets and Russian Federation were all revised upwards.
Global economic output should increase by 3.6 percent this year and by 3.7 percent in 2018, up marginally from the forecast published six months ago but well above growth seen in 2016, the International Monetary Fund said.
"As I said, the takeaway from my visit is the strong impression of the Korean economy", Lagarde said, stressing that the number shows the performance despite the adverse circumstances it faces, such as geopolitical tensions, 1.9 percent inflation, fiscal surplus and a current account "a bit on the high side".
In contrast, compared with the April 2017 WEO forecast, growth has been marked down for 2017 in the United Kingdom and for both 2017 and 2018 in the U.S., implying a 0.1 percentage-point aggregate growth downgrade for advanced economies in 2018.
Russian economy contracted by 2.8 percent in 2015 and 0.2 percent in 2016 as a result of sagging oil prices and economic sanctions imposed by western countries over Moscow's annexation of Crimea and meddling in Ukraine.
If Korea does reach an economic growth of 3 percent, it would be the first time since 2014. FNB senior economist Mamello Matikinca has also said that GDP growth below 1% was expected for SA in 2017.
In the next six to nine months, the US, Japan, Canada and the majority of European countries are expected to maintain "stable growth momentum", according to the OECD. Hong Kong's growth projection was raised from 2.4 percent to 3.5 percent while Taiwan's was raised from 1.7 percent to 2 percent and Singapore from 2.2 percent to 2.5 percent.
China has been projected to grow at 6.8 percent during the current year.
"This is not bounce back from a sharp deceleration, this is an acceleration from the fairly tepid growth rates of recent years, so that's really good news", International Monetary Fund chief economist Maurice Obstfeld told the Financial Times.