State thinktank expects S. Korean economy to grow 3.3 pct in 2009
12/11/2008 16:58
The Korea Development Institute (KDI) said today that the South Korean
economy is expected to grow 3. 3 percent in 2009, below the government's target
of 4 percent.
"Our economy is fast slowing down as the negative impact of the
global financial crisis is spilling over into other areas," the institute
said.
The state thinktank projected that the South Korean economy will grow
2.1 percent in the first half while it will achieve 4.4 percent expansion in the
latter half.
The KDI added that the dampening world economy also poses a
major downside risk for exports.
The KDI expected that the nation will post
an US$8.6 billion account surplus next year, compared with this year's estimated
loss of US$8.2 billion.
The forecast of next year's consumer price growth is
around 3.6 percent, down from this year's average of 4.8 percent.
However,
the slumping job market is expected to be worse as the institute forecast that
the jobless rate will increase to 3.6 percent next year from an estimated 3.2
percent this year.
The KDI figures are based on the assumption that the world
economy will expand around 2.5 percent and crude oil will be traded at US$70 per
barrel next year.
Meanwhile, the KDI suggested the government to adopt "
expansionary" fiscal and monetary polices to overcome the ongoing global
economic downturn.
"It will be a key to shore up market confidence in the
financial system, and efforts should also be made to enhance the overall
transparency," the institute said, adding that expansionary fiscal and monetary
polices should be simultaneously pursued to induce a soft landing of the real
economy.
Xinhua
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