S. Korean economy to shrink 3 pct this year: Goldman Sachs

SEOUL, April 27 (Yonhap) -- South Korea's economy is expected to shrink 3 percent
this year, Goldman Sachs said Monday, revising up its 2009 growth outlook for the
Asian country on effective stimulus measures and improving exports growth.

The growth outlook compared with an earlier projection of 4.5 percent contraction
and higher than that of the International Monetary Fund which forecast a 4
percent decline.
The upgrade is attributed to effective stimuli efforts by the government and
improving outlooks for exports, a key growth engine for Asia's fourth-largest
economy, Goldman Sachs said in a report.
Buffeted by a protracted global downturn, the South Korean economy is feared to
contract 2.4 percent this year, the first minus growth in more than a decade,
according to the latest prediction by the central bank.
The Bank of Korea said the nation's gross domestic product (GDP) grew 0.1 percent
during the first quarter from three months earlier, raising hopes that the pace
of economic downturn might be easing. For the last quarter of 2008, GDP plunged
5.1 percent.
Goldman Sachs predicted recovery will accelerate next year, saying that growth
will be 2.9 percent in 2010, higher than its earlier projection of 2.7 percent.
kokobj@yna.co.kr
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