Macroeconomic Forecast South Korea

July 2004 | Macroeconomic Forecasts

BMI VIEW: Export revenues, fiscal loosening and record-low interest rates will combine to ensure South Korea's lop-sided economy continues to function adequately, although far from perfectly, in 2004. Exports are likely to surge by around 27% this year in US dollar terms. The government is likely to crank up spending by around US$4bn, and the central bank will raise its key policy rate from 3.75% only when it is certain the economy is strong enough to stomach a contraction in liquidity. Real GDP will rise 5.9% this year.

If you would like to subscribe to China & North Asia Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to China & North Asia Monitor please click on the trial link below.