55684
South Korea Economy to Grow 2.3% in 2017
South Korea Economy to Grow 2.3% in 2017
  1. World Economy

South Korea Economy to Grow 2.3% in 2017

  1. World Economy

South Korea Economy to Grow 2.3% in 2017

South Korea’s major think tanks predicted the country’s economy may grow in the low 2% range next year, citing a global trade slowdown and faltering domestic consumption amid political uncertainties at home.
For 2017, the growth outlook stood at an average 2.3%, according to a survey on major private and state-run think tanks and research centers conducted by Yonhap News Agency.
The Korea Development Institute forecast that Asia’s fourth-largest economy will expand 2.4% next year from a year earlier, down from the 3% growth it predicted in May. “Our economy’s growth outlook is expected to reach 2.4%, below this year estimate,” said KDI President Kim Joon-kyung.
“Uncertainties surrounding the United States have expanded, and there is possibility of sluggish domestic consumption.” There have been mounting concerns that US president-elect Donald Trump’s looming protectionist policies could curb South Korean exports.
The Korea Institute for International Economic Policy forecast the local economy’s recovery momentum will be weakened in the face of still sluggish exports and domestic demand. “The growth outlook for next year is expected to be somewhere around 2.5%,” said KIEP President Hyun Jeong-take, adding that under the new US administration, the country could raise its key interest rate.
Hyun further forecast that possible trade friction between the United States and China could deal a blow to South Korea’s exports. Trump has said he would instruct his treasury secretary to label China a currency manipulator and order the US trade representative to bring trade cases against China.
KIEP did not elaborate on domestic demand, but the political uproar caused by President Park Geun-hye’s impeachment could exert a negative effect on consumption, which could hurt economic growth.
The Korea Institute for Industrial Economics and Trade said the South Korean economy will likely expand 2.5% next year as a drop in domestic demand and investment will weigh heavily on the local economy.  
“The 2017 economy will grow an estimated 2.5% as a slight recovery in exports will be offset by a slowdown in construction investment and private consumption,” said KIET President Yoo Byung-kyoo.
The KIEP said a boom in the local real estate market led by the Seoul government’s deregulation drive has contributed to propping up Asia’s fourth-largest economy throughout this year, which has been suffering from faltering exports and flaccid consumption.
Kwon Tae-shin, chairman of the Korea Economic Research Institute, meanwhile, forecast the South Korean economy will grow 2.2% annually next year.

 

Short URL : https://goo.gl/mwNiOK
  1. https://goo.gl/pgEJsd
  • https://goo.gl/82qs8m
  • https://goo.gl/0DQFFu
  • https://goo.gl/uqjr1u
  • https://goo.gl/gJrsPq

You can also read ...

Japan Mulls  US-Free TPP Deal
Japan is ready to relaunch the Trans-Pacific Partnership minus...
IMFC Pledges Joint Efforts  to Reduce Global Imbalances
The IMF’s steering committee adopted the position on trade taken...
Finns are working longer hours for lower pay.
Finland’s economic stewards, used to presenting bad news, are...
Colombia CB Sees Room to Cut Rate
Colombia can cut its policy rate toward a more neutral level as...
Germany Unmoved by US Corporate Tax Plans
German Finance Minister Wolfgang Schaeuble is not worried by the...
France seems to be going from strength to strength as the PMI for manufacturing and services rose to 56.7 in April from 56.4 in March.
Europe’s political fog may finally start to lift in the coming...
Malta BCI Favorable
Malta’s business conditions have remained favorable, according...
Malaysia Reaches 1MDB Bond Deal
The battle over the repayment of 1MDB bonds may be coming to an...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus