Economic Forecast
The Bank of Korea (BOK) predicts that the world’s 13th-largest economy will grow 3.8% this year. The forecast for this year’s economic growth rate is the same as the estimate released in October 2013. The nation’s central bank, on the other hand, adjusted its 2014 outlook for inflation as measured by the consumer price index, down to 2.3% from 2.5%.
“The country’s economic growth rate is projected to remain unchanged at 3.8% this year, and 4.0% in 2014, in light of the recent domestic and international economic conditions,” said BOK Governor Kim Choong-soo at a meeting on January 9.
The central bank anticipates that the nation’s economy will grow 3.9% in the first half of this year and 3.7% in the second. The estimate is based on the fact that positive factors, including the recent performance results and a downward readjustment in international raw material prices, and negative elements such as the weak yen cancel each other out.
In response to President Park Geun-hye’s recent remarks on increasing potential economic growth rates up to 4%, Governor Kim commented, “The president has always mentioned rates approaching 4%, and we are close to the goal.” He concluded by saying, “I think that it is possible for our economy to grow a little bit more with an improvement in structural productivity.”