SEOUL (BERNAMA) – South Korea’s economy is forecast to grow by an average of two per cent next year, as it is expected to struggle with weak domestic demand in spite of a gradual recovery in exports, according to reports yesterday.
The average outlooks by 20 local and international think tanks are largely in line with the 2.1-per-cent growth forecast recently announced by the Bank of Korea but lower than the government’s 2.4-per-cent projection announced in July, according to Yonhap news agency.
The state-run Korea Development Institute and the Korea Institute for Industrial Economics have projected growth rates of 2.2 per cent and two per cent for next year, respectively.
The Korea Institute of Finance has put forth a 2.1-per-cent growth forecast.
Growth projections by the International Monetary Fund, the Asian Development Bank and the Organisation for Economic Cooperation and Development were averaged at 2.2 per cent.
The three international institutions all projected for the South Korean economy to benefit from a rebound in the global chips industry and China’s economic recovery, but noted potential risks involving growing household and corporate debts.
Private think tanks and securities firms, meanwhile, have released relatively lower growth outlooks.
The growth projection by five key institutions, including Hyundai Research Institute, LG Economic Research Institute and Woori Finance Research Institute, was averaged at two per cent.
Inflation projections for South Korea by the 20 institutions, meanwhile, were averaged at 2.6 per cent for 2024, in line with the 2.6-per-cent prediction by the central bank.
