The central bank has said growth in all of 2023 would slow to 1.7% from an estimated 2.6% gain in 2022. (Reporting by Choonsik Yoo Editing by Shri Navaratnam)
SEOUL, Feb 9 (Reuters) - The rising cost of living is
likely to hurt South Korea's economy much more significantly in
the first half of this year than previously thought, its top
government research agency said on Thursday.
The Korea Development Institute (KDI) cut its economic
growth forecast for the January-June period to 1.1% in annual
terms from 1.4% seen in November, mainly due to slowing private
consumption. That is less than half the five-year average of
2.3% growth for the comparable period.
Still, it kept the 1.8% growth forecast for the entire 2023,
citing an accelerating recovery in the Chinese economy as the
driving factor, although acknowledging huge uncertainty over the
economic prospects in the giant neighbour.
South Korea's economy, Asia's fourth-largest, slipped into
its first contraction in 2-1/2 years in the final quarter of
2022 due to a crash in exports.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.