The Bank of Korea on October 10 adjusted its 2014 economic growth forecast for the next year down to 3.8 percent from its current estimate of 4.0 percent.
The monetary policy committee held a regular meeting on October 10 and cut the 2014 economic outlook to 3.8 percent. But it kept this year’s economic growth rate until the year’s end unchanged at 2.8 percent.
Kim Choong-soo, the BOK’s governor, said, “The reason we revised the 2014 growth rate forecast down to 3.8 percent is in line with the adjustment by the International Monetary Fund on October 7,” adding, “There is no way for the Korean economy, which is highly dependent on exports for growth, to maintain a high growth rate while all other economies in the world suffer, but it is not right if any of you considers this as a sign that the economy is losing steam.”
The International Monetary Fund (IMF) cut its 2014 outlook for the global economy by 0.2 percentage point to 3.6 percent, and lowered its growth estimate for the Korean economy to 3.7 percent from 3.9 percent as well.
The BOK maintained its 2013 growth estimate for the local economy at 2.8 percent, however. Exports, which account for around 50 percent of the Korean economy, are likely to grow 5.5 percent this year.