ID :
197803
Thu, 07/28/2011 - 08:24
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Shortlink :
https://oananews.org//node/197803
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S. Korea's economy to grow 4.1 pct in H2: think tank
SEOUL, July 28 (Yonhap) -- The South Korean economy is expected to expand 4.1 percent in the second half of the year in the face of rising global and domestic uncertainties, a private think tank said Thursday.
The growth forecast marks a modest gain from 3.8 percent growth in the first half, the Korea Economic Research Institute (KERI) said, adding Asia's fourth-largest economy is likely to grow 3.9 percent for all of 2011.
The full-year projection is well below the 6.2 percent increase reached in 2010 when the economy was able to make a comeback from the global financial crisis triggered by the collapse of U.S. investment giant Lehman Brothers in late 2008.
The annual growth forecast is also much lower than the 4.5 percent increase predicted by the government.
"The economy is unlikely to show a sharp expansion in the second quarter due to persistent domestic and external uncertainties such as the rollback of stimulus measures and fiscal crises in advanced economies," said KERI, affiliated with the Federation of Korean Industries, the country's top business lobby.
It said South Korea's consumer prices are expected to rise 3.9 percent from July through December, fueled by gains in agriculture prices, public utility costs and housing-related outlays.
The predicted gain is lower than the 4.3 percent increase reached in the first half, but high enough to pose difficult challenges for the country
The government had originally predicted consumer prices would grow by around 3 percent this year, but it recently revised up the consumer inflation target to 4 percent.
KERI predicted the country's current account surplus to reach US$6.4 billion in the second half, compared with a $8.4 billion surplus in the first half.
The think tank also said the country's construction investment will likely shrink 0.6 percent in the second half due to the slumping property market, compared with a 10 percent decline in the first half.
The growth forecast marks a modest gain from 3.8 percent growth in the first half, the Korea Economic Research Institute (KERI) said, adding Asia's fourth-largest economy is likely to grow 3.9 percent for all of 2011.
The full-year projection is well below the 6.2 percent increase reached in 2010 when the economy was able to make a comeback from the global financial crisis triggered by the collapse of U.S. investment giant Lehman Brothers in late 2008.
The annual growth forecast is also much lower than the 4.5 percent increase predicted by the government.
"The economy is unlikely to show a sharp expansion in the second quarter due to persistent domestic and external uncertainties such as the rollback of stimulus measures and fiscal crises in advanced economies," said KERI, affiliated with the Federation of Korean Industries, the country's top business lobby.
It said South Korea's consumer prices are expected to rise 3.9 percent from July through December, fueled by gains in agriculture prices, public utility costs and housing-related outlays.
The predicted gain is lower than the 4.3 percent increase reached in the first half, but high enough to pose difficult challenges for the country
The government had originally predicted consumer prices would grow by around 3 percent this year, but it recently revised up the consumer inflation target to 4 percent.
KERI predicted the country's current account surplus to reach US$6.4 billion in the second half, compared with a $8.4 billion surplus in the first half.
The think tank also said the country's construction investment will likely shrink 0.6 percent in the second half due to the slumping property market, compared with a 10 percent decline in the first half.
