Korea: Think tank revises up 2017 growth forecast for Korean economy to 2.8% – 27 Jun 2017

  • A state-run think tank, the Korea Institute for Industrial Economics and Trade, on 27 Jun 17 revised up its 2017 growth forecast for the South Korean economy by 0.3% to 2.8% on the strength of global trade and eased uncertainties at home and abroad.
  • In its earlier forecast released in Nov 16, KIET had expected Asia’s fourth largest economy to pull off a 2.5% growth in 2017.
  • KIET also predicted that exports, the country’s key economic driver, will rise 11.1% in 2017 on the back of greater world trade, logging the first double-digit growth in six years. The country’s imports is forecast to jump a sharp 15.2% in 2017, with the trade surplus falling to USD82.7bn from USD89.4bn in 2016.
  • Private consumption is expected to gain 2.2% as economic recovery and stimulus measures being pursued by the new Moon Jae-in government will likely boost consumer sentiment. But stagnant household income and rising borrowing costs may offset such positive changes, the KIET report said.
  • Facility investment will rise some 7.3% in 2017, a sharp turnaround from a 2.3% drop on the back of brisk overseas sales of locally made products, while construction investment will slow down to 5% from 2016’s 10.7% amid a cool-down in a real estate boom.
  • The think tank said South Korea’s key export items, such as semiconductors and steel, will bask in booming global demand and rising prices, but spreading trade protectionism is expected to put more pressure on the country’s exporters.

External Link : http://www.koreaherald.com/view.php?ud=20170627000711