The state-run Korea Development Institute is expected to cut its growth outlook for the nation,... in line with projections by major financial institutions for Korea to grow in the two-percent range this year. Park Se-young has the details. It's seems almost certain that Korea's growth this year will be in the two-percent range, amid worsening market conditions at home and abroad. According to Seoul-based Yonhap News Agency, citing unnamed sources, the state-run Korea Development Institute could lower its growth outlook to that level sometime in the middle of the month. The think tank usually announces its growth projections twice a year, in May and December. In its December outlook, KDI cut its forecast from three-point-one percent to the current three percent, based on projections for the global economy to grow three-point-six percent this year.
Since then, however, global economic conditions have worsened. The IMF lowered its global growth forecast from three-point-six percent in December to three-point-two percent in April. It also slashed its growth outlook for Korea, which relies heavily on exports, to two-point-seven percent from two-point-nine percent. Other institutes in Korea have already lowered their projections, with most expecting growth in the two-percent range.
The government's economic outlook for this year stands at three-point-one percent, but many say it, too, is likely to cut its projection when it releases its economy management plan late next month. Park Se-young, Arirang News.
Be the first to comment