ID :
37797
Mon, 12/29/2008 - 10:29
Auther :
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http://m.oananews.org//node/37797
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S. Korea`s facility investment to contract for 2nd year
SEOUL, Dec. 29 (Yonhap) -- South Korea's facility investment is expected to see
the second straight yearly contraction in 2009 as a global economic slump has
begun to spill over into the real economy, data released by the central bank
showed Monday.
The country's facility investment is estimated to have declined 7.2 percent
on-year in the fourth quarter, compared with a 4.7 percent gain three months
earlier, according to the Bank of Korea (BOK). Capital spending is expected to
fall 0.2 percent for this year and South Korea is forecast to see a 3.8 percent
decline in facility investment next year, it added.
It would be the first time that facility investment has contracted for the second
straight year since the 1997-98 Asian financial crisis. Such investment
contracted on-year 9.6 percent in 1997 and tumbled 42.3 percent in 1998, the
central bank said.
The data comes as the South Korean economy grew 0.5 percent in the third quarter
from three months earlier, the weakest growth in four years as exports lost steam
amid sluggish domestic demand.
It is almost impossible to expand facility investment as some South Korean
manufacturers have begun to curtail production in the face of a global recession,
experts say.
The country's industrial output shrank 2.4 percent in October from a year
earlier, the first decline in 13 months amid sluggish domestic demand and
exports. Inventories surged 17.6 percent on-year in October, the sharpest
increase in 12 years and facility operation ratio also fell an over two-year low
to 77 percent.
Local automakers including industry leader Hyundai Motor Co. have cut their
production temporarily as they are suffering from declining sales at home and
abroad.
The South Korean economy grew 0.5 percent in the third quarter from three months
earlier, the weakest growth in four years as exports lost steam amid sluggish
domestic demand.
The government is aiming to achieve economic growth of around 3 percent in 2009
by expanding fiscal spending. But the BOK predicted that Asia's fourth-largest
economy will grow just 2 percent next year, down from an estimated 3.7 percent
advance for this year.
sooyeon@yna.co.kr
(END)
the second straight yearly contraction in 2009 as a global economic slump has
begun to spill over into the real economy, data released by the central bank
showed Monday.
The country's facility investment is estimated to have declined 7.2 percent
on-year in the fourth quarter, compared with a 4.7 percent gain three months
earlier, according to the Bank of Korea (BOK). Capital spending is expected to
fall 0.2 percent for this year and South Korea is forecast to see a 3.8 percent
decline in facility investment next year, it added.
It would be the first time that facility investment has contracted for the second
straight year since the 1997-98 Asian financial crisis. Such investment
contracted on-year 9.6 percent in 1997 and tumbled 42.3 percent in 1998, the
central bank said.
The data comes as the South Korean economy grew 0.5 percent in the third quarter
from three months earlier, the weakest growth in four years as exports lost steam
amid sluggish domestic demand.
It is almost impossible to expand facility investment as some South Korean
manufacturers have begun to curtail production in the face of a global recession,
experts say.
The country's industrial output shrank 2.4 percent in October from a year
earlier, the first decline in 13 months amid sluggish domestic demand and
exports. Inventories surged 17.6 percent on-year in October, the sharpest
increase in 12 years and facility operation ratio also fell an over two-year low
to 77 percent.
Local automakers including industry leader Hyundai Motor Co. have cut their
production temporarily as they are suffering from declining sales at home and
abroad.
The South Korean economy grew 0.5 percent in the third quarter from three months
earlier, the weakest growth in four years as exports lost steam amid sluggish
domestic demand.
The government is aiming to achieve economic growth of around 3 percent in 2009
by expanding fiscal spending. But the BOK predicted that Asia's fourth-largest
economy will grow just 2 percent next year, down from an estimated 3.7 percent
advance for this year.
sooyeon@yna.co.kr
(END)
