ID :
208256
Tue, 09/20/2011 - 11:28
Auther :
Shortlink :
https://oananews.org//node/208256
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US economy may not recover as fast as expected: BOK chief
SEOUL, Sept. 20 (Yonhap) -- South Korea's top central banker said Tuesday that the U.S. economy may not recover as fast as expected because its real economic sectors have yet to rebound.
Bank of Korea (BOK) Gov. Kim Choong-soo said in a monthly meeting with experts that currently, the real economy and the financial system are closely intertwined and affect each other.
The governor said that the recovery of the U.S. economy may be slower than expected as its real economy has yet to show meaningful recovery.
His remarks came as the outlook for the global economy is growing dimmer, hit by a sputtering recovery of the U.S. economy and the eurozone debt crisis.
Finance Minister Bahk Jae-wan told lawmakers on Tuesday that there is a 30 percent chance that the global economy could slide back into a recession, raising alarm about the deteriorating economic outlook.
The BOK said experts also shared the view that as uncertainty is rising in the global economy, downside risks to the Korean economy have also amplified.
Some pointed out that the local financial markets' response to changes in external conditions was quite excessive, according to the central bank.
Volatility of the local financial markets has increased, hit by a spate of negative news about the crisis in the eurozone.
The local currency fell 3.13 percent to the dollar this week alone, becoming one of the worst performers among Asian currencies as the eurozone problem raised demand for safe assets.
Bank of Korea (BOK) Gov. Kim Choong-soo said in a monthly meeting with experts that currently, the real economy and the financial system are closely intertwined and affect each other.
The governor said that the recovery of the U.S. economy may be slower than expected as its real economy has yet to show meaningful recovery.
His remarks came as the outlook for the global economy is growing dimmer, hit by a sputtering recovery of the U.S. economy and the eurozone debt crisis.
Finance Minister Bahk Jae-wan told lawmakers on Tuesday that there is a 30 percent chance that the global economy could slide back into a recession, raising alarm about the deteriorating economic outlook.
The BOK said experts also shared the view that as uncertainty is rising in the global economy, downside risks to the Korean economy have also amplified.
Some pointed out that the local financial markets' response to changes in external conditions was quite excessive, according to the central bank.
Volatility of the local financial markets has increased, hit by a spate of negative news about the crisis in the eurozone.
The local currency fell 3.13 percent to the dollar this week alone, becoming one of the worst performers among Asian currencies as the eurozone problem raised demand for safe assets.
