South Korea’s economic indicators revised down sharply-Analysts
2023.02.09 01:17
South Korea’s economic indicators revised down sharply-Analysts
By Kristina Sobol
Budrigannews.com – According to a report released on Thursday by South Korea’s top government research agency, the rising cost of living is more likely to hurt the economy in the first half of this year than previously thought.
Due primarily to a slowdown in private consumption, the Korea Development Institute (KDI) decreased its annual economic growth forecast for the January-June period from 1.4% in November to 1.1%. This is less than half the average growth of 2.3% over a five-year period that is comparable.
Despite this, it maintained its 1.8% growth forecast for the entire year 2023, citing an accelerating recovery in the Chinese economy as the driving factor. However, it acknowledged that there was a great deal of uncertainty regarding the economic prospects of the enormous neighbor.
Due to a decline in exports, South Korea’s economy, Asia’s fourth-largest, entered its first contraction in two and a half years in the fourth quarter of 2022.
According to the central bank, growth in 2023 will slow to 1.7 percent from an estimated 2.6 percent gain in 2022.
