Macroeconomic Forecast South Korea

BMI View We retain our 5.0% GDP growth estimate for 2007 while acknowledging downside risks to our 5.1% forecast for 2008 as South Korean exports are likely to be affected by a weaker global economy. Tax cuts and other pro-business government policies could give a boost to private consumption and investment, but these should also be affected by more adverse global conditions. In addition, inflation is becoming a major concern and may force the Bank of Korea (BoK) to raise interest rates further.

To read the full article, please choose one of the following options: