ID :
77205
Thu, 08/27/2009 - 11:23
Auther :
Shortlink :
https://www.oananews.org//node/77205
The shortlink copeid
S. Korea's Q3 growth may top 1 pct: analysts
SEOUL, Aug. 27 (Yonhap) -- South Korea's quarterly economic growth will likely exceed 1 percent in the third quarter on the back of improving exports and rising domestic demand, economists said Thursday.
The South Korean economy, Asia's fourth-largest, was previously predicted to post
a growth rate of below 1 percent or register negative growth for the
July-September period due to the waning effect of pump-priming measures.
Propped up by the government's massive stimulus package, the country chalked up a
surprise 2.3 percent on-quarter gain in second-quarter gross domestic product,
the fastest expansion in over five years.
"There have been some concerns over a possible quarterly contraction in the third
quarter. But the Korean economy will likely log positive growth in the
July-September period and may grow over 1 percent if the pace of recovery picks
up," said Kwon Soon-woo, a senior economist at the Samsung Economic Research
Institute.
Lee Keun-tae, an economist at LG Economic Research Institute, echoed a similar
view, saying that the think tank revised up its third-quarter growth forecast to
over 1 percent from 0.5 percent, citing solid performance of exporters and
improving global economy.
A set of economic data are underpinning optimism that the Korean economy might
have passed its worst downturn in more than a decade. Consumer and manufacturers'
confidence rose to multiple yearly highs in August. Stocks and the Korean
currency have been stabilizing fast after being battered by the global financial
rout.
But policymakers are still striking a cautious note about the sustainability of
the nascent economic recovery, saying that it is too early to end the country's
expansionary policies due to lingering uncertainty.
Amid growing signs of an economic rebound and record-low borrowing costs,
home-backed loans have jumped, raising concerns over an unusual spike in housing
prices and possible asset inflation. Market expectations have mounted about when
the government and the central bank will begin to unwind unconventional measures
they carried out in the midst of the global economic recession.
"Currently, there is a need to prepare for the shift by focusing on how to exit,
but it is premature to talk about when to shift such policies into a tightening
stance," Finance Minister Yoon Jeung-hyun said Wednesday.
On Aug. 11, the Bank of Korea froze the key interest rate at a record-low of 2
percent for the sixth straight month. BOK Gov. Lee Seong-tae cast a more upbeat
view on the economy, suggesting that the bank is mulling a possible rate hike
down the road.
The bank cut the rate by a total of 3.25 percentage points between October and
February in a bid to bolster the slowing economy.
sooyeon@yna.co.kr
(END)
The South Korean economy, Asia's fourth-largest, was previously predicted to post
a growth rate of below 1 percent or register negative growth for the
July-September period due to the waning effect of pump-priming measures.
Propped up by the government's massive stimulus package, the country chalked up a
surprise 2.3 percent on-quarter gain in second-quarter gross domestic product,
the fastest expansion in over five years.
"There have been some concerns over a possible quarterly contraction in the third
quarter. But the Korean economy will likely log positive growth in the
July-September period and may grow over 1 percent if the pace of recovery picks
up," said Kwon Soon-woo, a senior economist at the Samsung Economic Research
Institute.
Lee Keun-tae, an economist at LG Economic Research Institute, echoed a similar
view, saying that the think tank revised up its third-quarter growth forecast to
over 1 percent from 0.5 percent, citing solid performance of exporters and
improving global economy.
A set of economic data are underpinning optimism that the Korean economy might
have passed its worst downturn in more than a decade. Consumer and manufacturers'
confidence rose to multiple yearly highs in August. Stocks and the Korean
currency have been stabilizing fast after being battered by the global financial
rout.
But policymakers are still striking a cautious note about the sustainability of
the nascent economic recovery, saying that it is too early to end the country's
expansionary policies due to lingering uncertainty.
Amid growing signs of an economic rebound and record-low borrowing costs,
home-backed loans have jumped, raising concerns over an unusual spike in housing
prices and possible asset inflation. Market expectations have mounted about when
the government and the central bank will begin to unwind unconventional measures
they carried out in the midst of the global economic recession.
"Currently, there is a need to prepare for the shift by focusing on how to exit,
but it is premature to talk about when to shift such policies into a tightening
stance," Finance Minister Yoon Jeung-hyun said Wednesday.
On Aug. 11, the Bank of Korea froze the key interest rate at a record-low of 2
percent for the sixth straight month. BOK Gov. Lee Seong-tae cast a more upbeat
view on the economy, suggesting that the bank is mulling a possible rate hike
down the road.
The bank cut the rate by a total of 3.25 percentage points between October and
February in a bid to bolster the slowing economy.
sooyeon@yna.co.kr
(END)
