KDI head cautious about economic recovery

SEOUL, Aug. 7 (Yonhap) -- Recent indicators seem to be pointing to a turnaround
in economic conditions but it is "too early" to say that they are signaling a
solid recovery as outside market prospects still remain uncertain, the head of a
major state-run think tank said Friday.

"Indicators for the second quarter all seem to demonstrate that the global
economy has been bottoming out and the Korean economy is also fast recovering,
but it is too early to say that they are sure signals of an economic recovery."
Hyun Oh-seok, the head of the Korea Development Institute, said in his keynote
speech at a forum held in Seoul.
"It remains uncertain whether the U.S. and Europe will keep their current
economic conditions even in the second half," he added.
His cautious economic assessment comes amid growing optimism that the Korean
economy might be bottoming out after suffering severe turbulence in the wake of a
global slowdown sparked by the collapse of Lehman Brothers last year.
The finance ministry said in a recent report that the nation's economy will
continue to improve in the second half of this year as labor and business
conditions are expected to rebound at home and abroad. It earlier revised up its
2009 growth outlook for this year from minus 2 percent to minus 1.5 percent.
kokobj@yna.co.kr
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