Korea Economic Outlook
July 17, 2018The economy’s performance has been solid in recent months, following robust GDP growth in the first quarter, although there appear to be warning signs. Through to June of this year, economic confidence among consumers has remained in optimistic territory, underpinned by positive outlooks regarding income, spending and living standards. However, optimism hit its lowest point in over a year in June. Moreover, in the same month, business activity in the manufacturing sector decreased for the fourth consecutive month, according to survey data. Meanwhile, local elections were held on 13 June, which boosted President Moon Jae-In’s political standing. His party won 11 out of the 12 National Assembly seats in the by-elections, and 14 out of the 17 races for mayor or governor. Although Moon Jae-In will still head a minority government, this result will help his political and economic agenda progress, which includes taming conglomerate power over business and improving labor conditions.
Korea Economic GrowthIncreased government spending, together with the possibility of reduced geopolitical tensions on the Korean peninsula, should support economic activity in 2018. However, elevated household debt, government measures to tame housing prices, rising global trade tensions, higher oil prices and signs of a slowdown in China all represent downside risks. Met the why particular panelists forecast the economy will grow 2.9% this year, which is unchanged from last month’s forecast, and 2.8% in 2019.
Korea Economy Data
5 years of Korea economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.55||1.55 %||Jul 17|
|Exchange Rate||1,124||0.21 %||Jul 17|
|Stock Market||2,298||-0.11 %||Jul 17|
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Korea Economic News
July 12, 2018
At its 12 July meeting, the Monetary Policy Board (MPB) of the Bank of Korea (BOK) decided to keep the base rate unchanged at 1.50% amid slow job growth, weak inflation and economic risks from abroad.
July 3, 2018
According to the National Statistics Office of Korea, consumer prices fell 0.2% over the previous month in June, contrasting the 0.1% increase logged in May.
July 2, 2018
Business activity contracted in the manufacturing sector for the fourth consecutive month in June, although to a lesser extent than in May, according to the latest survey data.
July 1, 2018
In June, merchandise exports fell 0.1% compared to the same month last year, totaling USD 51.2 billion.
June 29, 2018
The Bank of Korea’s forward-looking business confidence indicator (BSI) for the manufacturing sector has registered pessimism among businesses for every month since June 2011.