Economic Growth Forecast

Korea Institute of Finance Expects “4% Growth in Korean Economy Next Year” 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOVEMBER 2013.

The Korea Institute of Finance expects Korea’s economy to grow by 4% next year. At the “2013 Financial Trend and 2014 Outlook” on October 30, Researcher Park Sung-wook of the Korea Institute of Finance said, “Exports and investments will support growth in 2014,” and added, “The annual economic growth rate will slightly exceed the potential growth rate [3.6%-3.7%].”Park’s anticipated growth rate is the highest estimate when compared to all other domestic and international facilities. Previously, the International Monetary Fund (IMF) expected Korea’s economic growth rate to be 3.7%, the Bank of Korea 3.8%, and the Ministry of Strategy and Finance 3.9%.Park expected the rate of increase for next year’s capital investment to be 7.5%, which is far more than this year’s (estimated 2.3%), leading an economic recovery. He explained this effect is caused by the government’s investment activation measures and increase in exports. With the global economy recovering, he expected the rate of increase for next year’s exports to be 6.7%, which is higher than this year’s (estimated 5.4%). Park believes capital investments and exports will play leading roles in 4% growth. On the other hand, he expected next year’s public consumption to increase 3.2%. This is higher than this year’s (1.9%), but relatively low compared to the economic growth rate. He estimated next year’s inflation rate to be around 2.4%. He also estimated next year’s current account to see a huge surplus of US$52.9 million, following this year’s (estimated US$61.7 million). Also, he expected the exchange rate to be an annual average of 1,074 won per 1 dollar. - See more at: http://www.businesskorea.co.kr/article/2093/economic-growth-forecast-korea-institute-finance-expects-%E2%80%9C4-growth-korean-economy-next#sthash.n5Xw7DMy.dpuf'm a paragraph. Click here to add your own text and edit me. It’s easy. Just click “Edit Text” or double click me and you can start adding your own content and make changes to the font. Feel free to drag and drop me anywhere you like on your page. I’m a great place for you to tell a story and let your users know a little more about you. (ref. businesskorea.co.kr)

 

 

“South Korea offers appealing growth, world brands. ”“ With one of the best growth rates among OECD countries, we believe South Korea's dynamism is unique. The adjective 'emerging' no longer applies in our view – the IMF expects its GDP to grow by about 4% annually until 2015, much higher than in many developed economies. The country boasts a budget surplus and relatively low and stable inflation. ”[BNP PARISBAS. Emmanuelle Wilbrod, Investment Specialist – Emerging Markets. 02/07/2012]

 

“Investing in S. Korea Today is Like Buying the U.S. in the 1990s.” “If you're tired of the crisis a month routine we've seen with the United States and the Eurozone, there's always South Korea. In fact, for demographic and budgetary reasons, South Korea is much like the United States was during the prosperous 1990s--not the deficit-ridden, slow-growing place the U.S. has become. The truth is South Korea, has very little foreign debt, and recently re-elected the pro-business party by a comfortable margin. What's more, South Korea has kept its government the smallest in the OECD club of rich nations. So if you haven't considered investing in South Korea you should.” [By MARTIN HUTCHINSON, Global Investing Specialist, Money Morning January 21, 2013.]

 

“ Moody’s Upgrades Korea’s Credit Rating to Aa3s” “ Moody’s Investors Service has upgraded Korea’s credit rating from A1 to Aa3, while maintaining its stable outlook. The Aa3 and stable ratings are the highest rating the country has ever received. (…)The rating agency’s reasons for the upgrade included: ‘strong fiscal fundamentals’, ‘a high degree of economic resilience and competitiveness’, ‘reduced external vulnerability of the banking sector’, and ‘continuation of status-quo in North-South geopolitics’...” [Source: Moody’s Investors Service] )

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