SEOUL, 6th June, 2024 (WAM) -- A Korean research firm on Thursday revised its outlook on Republic of Korea's economic growth for this year to 2.7 percent from 2.2 percent, as it sees exports to remain robust throughout the year.
Korean news agency Yonhap reported on Thursday that Hyundai Research Institute (HRI) has made the upward revision as the country's economic growth will be driven by robust exports, rebounding from last year's "combined depression" composed of sluggish shipments, high consumer prices and high interest rates. Increased global transactions will help the country report 9.3 percent on-year growth in exports this year, reversing from a 7.5-percent decline last year, the HRI said.
Helped by strong exports, Korea is expected to post a trade surplus of US$43.4 billion this year, shifting from a deficit of US$10.3 billion last year. The country's current account surplus is also forecast to expand to US$61 billion from US$35.5 billion during the same period.
On the domestic front, however, high inflation and high interest rates will continue to weigh on domestic demand this year. The research centre called on the government to take necessary measures to prop up consumption and investments in line with robust exports for an economic growth.
The HRI's growth outlook is higher than the forecasts released by the Korean government, its central bank and global organisations. The Organisation for Economic Cooperation and Development revised up its outlook for South Korea's economic growth this year to 2.6 percent from its earlier projection in February of 2.2 percent.
The forecast was rosier than the growth outlook for Korea of 2.3 percent by the International Monetary Fund. The Korean government projected 2.2 percent growth and the Bank of Korea presented a 2.1 percent forecast.