ID :
59020
Tue, 05/05/2009 - 17:35
Auther :
Shortlink :
https://www.oananews.org//node/59020
The shortlink copeid
S.. Korea's per-capita GDP to stay below US$20,000 mark until 2014: IMF
SEOUL, May 5 (Yonhap) -- South Korea's per-capita gross domestic product (GDP)
will likely remain below the US$20,000-mark until 2014 due to a protracted
economic slump, data by the International Monetary Fund (IMF) showed Tuesday.
After topping $20,000 in 2007, the country's per-capita GDP, or the total value
of goods and services divided by its population, sank below that level last year
due to slowing economic growth and a weaker currency.
In its revised global economic outlook, the IMF forecast South Korea's per capita
GDP will dip to $14,945 this year, down from $19,504 in 2008 when the Korean
economy grew 2.2 percent, as the country struggles with the global economic
recession.
The IMF predicted that the figure will climb to the $15,000-level in 2010 and
continue to rise, but said it would not breach the $20,000 mark until beyond
2014, when it will hit $19,015.
Analysts say the IMF's bleak outlook seems to be based on the protracted global
economic sump and the Korean currency's weakness to the U.S. dollar.
The Korean currency tumbled 25.7 percent to the dollar in 2008 alone. The local
currency has recouped some weakness this year, but its value has still fallen one
percent to the greenback so far this year. A weaker won brings down the dollar
conversion value of the per capita GDP.
Meanwhile, the IMF forecast that South Korea's inflation will reach the highest
level among 33 advanced countries for the next five years. Asia's fourth-largest
economy will likely post a 3 percent gain in inflation between 2010 and 2014, it
said.
"As the Korean economy is showing some signs of improvement, there is the
possibility that several figures will be better than the IMF's forecast," an
official at the finance ministry said.
South Korea's economy is projected to shrink 2.4 percent this year, the worst
performance in 11 years, stung by falling exports and weakening domestic demand,
according to the country's central bank.
In April, the IMF downgraded its 2010 growth forecast for the Korean economy to
1.5 percent from an earlier prediction of 4.2 percent. The international agency
said that Korean economy will likely contract 4 percent this year.
sooyeon@yna.co.kr
(END)
will likely remain below the US$20,000-mark until 2014 due to a protracted
economic slump, data by the International Monetary Fund (IMF) showed Tuesday.
After topping $20,000 in 2007, the country's per-capita GDP, or the total value
of goods and services divided by its population, sank below that level last year
due to slowing economic growth and a weaker currency.
In its revised global economic outlook, the IMF forecast South Korea's per capita
GDP will dip to $14,945 this year, down from $19,504 in 2008 when the Korean
economy grew 2.2 percent, as the country struggles with the global economic
recession.
The IMF predicted that the figure will climb to the $15,000-level in 2010 and
continue to rise, but said it would not breach the $20,000 mark until beyond
2014, when it will hit $19,015.
Analysts say the IMF's bleak outlook seems to be based on the protracted global
economic sump and the Korean currency's weakness to the U.S. dollar.
The Korean currency tumbled 25.7 percent to the dollar in 2008 alone. The local
currency has recouped some weakness this year, but its value has still fallen one
percent to the greenback so far this year. A weaker won brings down the dollar
conversion value of the per capita GDP.
Meanwhile, the IMF forecast that South Korea's inflation will reach the highest
level among 33 advanced countries for the next five years. Asia's fourth-largest
economy will likely post a 3 percent gain in inflation between 2010 and 2014, it
said.
"As the Korean economy is showing some signs of improvement, there is the
possibility that several figures will be better than the IMF's forecast," an
official at the finance ministry said.
South Korea's economy is projected to shrink 2.4 percent this year, the worst
performance in 11 years, stung by falling exports and weakening domestic demand,
according to the country's central bank.
In April, the IMF downgraded its 2010 growth forecast for the Korean economy to
1.5 percent from an earlier prediction of 4.2 percent. The international agency
said that Korean economy will likely contract 4 percent this year.
sooyeon@yna.co.kr
(END)
