ID :
40130
Mon, 01/12/2009 - 09:51
Auther :
Shortlink :
http://m.oananews.org//node/40130
The shortlink copeid
Investment banks predict average 0.8 pct growth for S. Korea
SEOUL, Jan. 12 (Yonhap) -- Major global investment banks lowered their 2009
growth projections for South Korea to below 1 percent, reflecting the impact of a
faster-than-expected worldwide recession on the nation's export-driven economy,
data showed Monday.
According to the data provided by the Korea Center for International Finance,
nine major investment banks predicted Asia's fourth-largest economy would expand
by an average of 0.8 percent for this year, down from a 1.2 percent expansion
predicted at the end of November. They forecast an average growth rate of 3
percent in October.
Merrily Lynch turned sharply pessimistic about the South Korean economy,
predicting a contraction of 1.2 percent for next year from a 1.5 percent
expansion predicted at the end of November. Switzerland-based UBS maintained its
forecast that the economy would shrink 3 percent, unchanged from a month earlier.
Goldman Sachs lowered its growth outlook to 1.8 percent from 3.1 percent. Most
other banks retained their earlier bleak predictions with the newly surveyed
Deutsche Bank forecasting a 0.2 percent expansion.
The gloomy outlook comes as South Korea's government steps up efforts to boost
its fast-slowing economy with a raft of economic stimulus packages including tax
cuts and fiscal spending amid weakening domestic demand and declining export
growth.
President Lee Myung-bak said last month that the economy could shrink in the
first half of 2009 amid slowing exports, higher unemployment and anemic
consumption. In a monthly economic report on Thursday, the finance ministry
echoed the view that South Korea faces an "increasing risk of recession."
To stimulate job creation and kick-start the slumping economy, the finance
ministry announced last week that it would invest a total of 50 trillion won
(US$37 billion) in what it calls "Green New Deal" projects over the next four
years.
The central bank joined in the effort by slashing its key interest rate on Friday
by half a percentage point, the fifth cut in three months.
In mid-December, the government said it would strive for 3 percent growth this
year, though many experts say that goal is too optimistic as recessions in major
advanced nations including the U.S. could hit South Korea's export-oriented
economy.
kokobj@yna.co.kr
(END)??
growth projections for South Korea to below 1 percent, reflecting the impact of a
faster-than-expected worldwide recession on the nation's export-driven economy,
data showed Monday.
According to the data provided by the Korea Center for International Finance,
nine major investment banks predicted Asia's fourth-largest economy would expand
by an average of 0.8 percent for this year, down from a 1.2 percent expansion
predicted at the end of November. They forecast an average growth rate of 3
percent in October.
Merrily Lynch turned sharply pessimistic about the South Korean economy,
predicting a contraction of 1.2 percent for next year from a 1.5 percent
expansion predicted at the end of November. Switzerland-based UBS maintained its
forecast that the economy would shrink 3 percent, unchanged from a month earlier.
Goldman Sachs lowered its growth outlook to 1.8 percent from 3.1 percent. Most
other banks retained their earlier bleak predictions with the newly surveyed
Deutsche Bank forecasting a 0.2 percent expansion.
The gloomy outlook comes as South Korea's government steps up efforts to boost
its fast-slowing economy with a raft of economic stimulus packages including tax
cuts and fiscal spending amid weakening domestic demand and declining export
growth.
President Lee Myung-bak said last month that the economy could shrink in the
first half of 2009 amid slowing exports, higher unemployment and anemic
consumption. In a monthly economic report on Thursday, the finance ministry
echoed the view that South Korea faces an "increasing risk of recession."
To stimulate job creation and kick-start the slumping economy, the finance
ministry announced last week that it would invest a total of 50 trillion won
(US$37 billion) in what it calls "Green New Deal" projects over the next four
years.
The central bank joined in the effort by slashing its key interest rate on Friday
by half a percentage point, the fifth cut in three months.
In mid-December, the government said it would strive for 3 percent growth this
year, though many experts say that goal is too optimistic as recessions in major
advanced nations including the U.S. could hit South Korea's export-oriented
economy.
kokobj@yna.co.kr
(END)??
