South 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.