ID :
31633
Sat, 11/22/2008 - 21:36
Auther :
Shortlink :
https://www.oananews.org//node/31633
The shortlink copeid
S. Korea`s economic growth to drop below 3 pct in 2009: minister
SEOUL, Nov. 21 (Yonhap) -- South Korea's economic growth could fall below 3 percent next year amid growing concerns that global financial turmoil could hit the nation's export-driven economy, Finance Minister Kang Man-soo said Friday.
"Considering current trends and other recent developments, (growth) will continue
to slow down," Kang told lawmakers in a parliamentary session. Asked if the
growth could fall to the mid- to-upper 2 percent range, he answered, "It is
likely."
The growth projection is sharply lower than the government's earlier 4 percent
expansion target. Still, many observers see the downgraded prediction as still
too optimistic given ever-worsening business conditions.
South Korea's export-driven economy will feel the pinch from the slide in global
demand the most as major economies including the U.S. and Japan are slowing
sharply, experts say. Domestic demand is also in a slump as companies and
households cut back on spending.
Earlier, the international investment bank UBS said in a note to its clients that
South Korea's gross domestic product will contract 3 percent next year, marking
its first annual decline in 11 years. UBS previously forecast a 1.1 percent
advance.
This is the worst growth projection made by foreign investment banks for Asia's
fourth-largest economy.
The International Monetary Fund recently lowered its 2009 growth outlook for
South Korea to 3.5 percent from its previous prediction of a 4.1 percent advance.
It is reportedly considering a further downward revision to the forecast.
Local think tanks also rushed to revise their growth projections downward. The
state-run Korea Development Institute lowered its growth projection for South
Korea to 3.3 percent from 4.2 percent, while leading private think tank Samsung
Economic Research Institute cut its 4.4 percent projection to 3.6 percent.
According to the central bank, South Korea's economy expanded 0.6 percent in the
third quarter from three months earlier, the slowest in four years. The
government said that it has no immediate plan to revise its official growth
target.
kokobj@yna.co.kr
(END)
"Considering current trends and other recent developments, (growth) will continue
to slow down," Kang told lawmakers in a parliamentary session. Asked if the
growth could fall to the mid- to-upper 2 percent range, he answered, "It is
likely."
The growth projection is sharply lower than the government's earlier 4 percent
expansion target. Still, many observers see the downgraded prediction as still
too optimistic given ever-worsening business conditions.
South Korea's export-driven economy will feel the pinch from the slide in global
demand the most as major economies including the U.S. and Japan are slowing
sharply, experts say. Domestic demand is also in a slump as companies and
households cut back on spending.
Earlier, the international investment bank UBS said in a note to its clients that
South Korea's gross domestic product will contract 3 percent next year, marking
its first annual decline in 11 years. UBS previously forecast a 1.1 percent
advance.
This is the worst growth projection made by foreign investment banks for Asia's
fourth-largest economy.
The International Monetary Fund recently lowered its 2009 growth outlook for
South Korea to 3.5 percent from its previous prediction of a 4.1 percent advance.
It is reportedly considering a further downward revision to the forecast.
Local think tanks also rushed to revise their growth projections downward. The
state-run Korea Development Institute lowered its growth projection for South
Korea to 3.3 percent from 4.2 percent, while leading private think tank Samsung
Economic Research Institute cut its 4.4 percent projection to 3.6 percent.
According to the central bank, South Korea's economy expanded 0.6 percent in the
third quarter from three months earlier, the slowest in four years. The
government said that it has no immediate plan to revise its official growth
target.
kokobj@yna.co.kr
(END)
