Foreign investment banks lower Korea's growth forecast
- 9 years ago
Foreign investment banks have generally lowered their economic growth outlooks for Korea for 2015.
The average is in accordance with the Bank of Korea's outlook of 3-point-4 percent…
but some have gone down to the two percent range... on weaker domestic consumption and falling oil prices.
Sohn Jung-in reports.
Foreign investment banks were prompt to adjust Korea's growth forecast on mounting downward pressure.
According to Bloomberg, the market median for Korea's growth forecast stood at 3-point-4 percent on Thursday... in line with the Bank of Korea's forecast.
Bloomberg's survey of 27 institutions showed... Nomura has slashed its outlook for Korea's growth to 2-point-5 percent from its earlier forecast of 3-percent,... becoming the first foreign institution to project an expansion in the two-percent range.
Analysts cited slumping domestic consumption and slowing exports as factors denting the growth rate,... along with the global economy recovering at a slower pace than anticipated.
They say external factors such as the prospect of the U.S. raising its interest rate... and the weakening of the Japanese yen could also drag Korea's growth down further.
But some investment banks have kept their rosy outlooks. Barclays has projected a growth rate of 4-percent, while Credit Suisse has matched the government's outlook of 3-point-eight percent.
Inflation projections, however, by foreign investment banks have dropped to 1-point-3 percent... from an earlier figure of 1-point-7 percent, as Seoul is under a stronger deflationary pressure this year.
Domestic research institutes have also indicated that they could lower the inflation outlook in their quarterly projections next month,... with oil prices at a lower level than they projected last year.
Sohn Jung-in, Arirang News.
The average is in accordance with the Bank of Korea's outlook of 3-point-4 percent…
but some have gone down to the two percent range... on weaker domestic consumption and falling oil prices.
Sohn Jung-in reports.
Foreign investment banks were prompt to adjust Korea's growth forecast on mounting downward pressure.
According to Bloomberg, the market median for Korea's growth forecast stood at 3-point-4 percent on Thursday... in line with the Bank of Korea's forecast.
Bloomberg's survey of 27 institutions showed... Nomura has slashed its outlook for Korea's growth to 2-point-5 percent from its earlier forecast of 3-percent,... becoming the first foreign institution to project an expansion in the two-percent range.
Analysts cited slumping domestic consumption and slowing exports as factors denting the growth rate,... along with the global economy recovering at a slower pace than anticipated.
They say external factors such as the prospect of the U.S. raising its interest rate... and the weakening of the Japanese yen could also drag Korea's growth down further.
But some investment banks have kept their rosy outlooks. Barclays has projected a growth rate of 4-percent, while Credit Suisse has matched the government's outlook of 3-point-eight percent.
Inflation projections, however, by foreign investment banks have dropped to 1-point-3 percent... from an earlier figure of 1-point-7 percent, as Seoul is under a stronger deflationary pressure this year.
Domestic research institutes have also indicated that they could lower the inflation outlook in their quarterly projections next month,... with oil prices at a lower level than they projected last year.
Sohn Jung-in, Arirang News.