S. Korea to post trade shortfall in 2009 on global recession

SEOUL, Nov. 19 (Yonhap) -- South Korea is expected to post a trade deficit for a second straight year in 2009 mainly due to declining exports amid worries over a global economic recession, a government report showed Wednesday.

According to the report submitted to parliament last week, South Korea's trade
deficit will amount to US$5.6 billion next year. Exports and imports were
estimated at $490 billion and $495.6 billion, respectively.
South Korea is likely to log around $9 billion in trade shortfall this year, the
first red ink since 1997 when the nation was hit by an Asia-wide financial
crisis.
"The global economic recession will lead to a decline in overseas demand, which
will surely affect our export-driven economy," a finance ministry official said.
In the report, the government also revised down its private spending projection
from an earlier 4.5 percent growth to 2.5 percent for next year, reflecting the
latest economic conditions at home and abroad.
The adjustment comes as South Korea is gripped by growing jitters that prolonged
financial instability stemming from the U.S. could send the global economy into a
recession.
According to the central bank, the nation's gross domestic product expanded 0.6
percent in the third quarter of this year from three months earlier, the slowest
rate in four years.
The Finance Ministry recently lowered its 2009 growth projection to 4 percent
from an earlier 5 percent expansion estimate.
kokobj@yna.co.kr
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