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South Korea Growth Predicted at 2.9 Percent

South Korea Growth Predicted at 2.9 PercentSouth Korea Growth Predicted at 2.9 Percent

Global investment banks are suggesting an annual growth rate of 2.9% for the South Korean economy this year, data showed Saturday, just below the central bank’s outlook of 3%, Yonhap reported .While the Bank of Korea said in October Asia’s fourth-largest economy will grow 2.9% on-year for 2018, Gov. Lee Ju-yeol told reporters earlier this year that growth may reach 3%, hinting at a revision. Barclays and Goldman Sachs estimated an annual growth rate of 3.1% for the South Korean economy in 2018, while Bank of America Merrill Lynch, Citi, Nomura and UBS suggested 3% growth. JP Morgan, Credit Suisse, and HSBC expected on-year growth to reach 2.9%, 2.8% and 2.6%, respectively. The nine international banks surveyed also said they expect the country’s consumer prices to rise 2% this year, compared to the 1.9% increase posted in 2017. Meanwhile, increase of the minimum wage will boost private spending, which in turn can help Seoul to break from its low growth trend, a senior government official said Friday.

 

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