Korean economy to see weaker demand, slower export growth in 2019: Reports
- 5 years ago
In terms of the economy, however, it's been a rough year for Korea.
Businesses have been reluctant to invest, and consumers reluctant to spend.
That's right. South Korea is also caught in the middle of the trade war between the U.S. and China.
So economists have been steadily lowering the estimates for economic growth for 2019.
Our Ko Roon-hee has the latest numbers.
Korea's economy in 2019 will grow more slowly than last year... mainly due to weak domestic demand and slower growth in exports.
Domestic demand includes private consumption, public spending and business investment,... and among the three, the picture looks worst in terms of investment.
According to a report last month from Hyundai Research Institute, construction investment is expected to fall in the new year by 2-point-9 percent.
That's even worse than last year when investment shrank by an estimated 2-point-4 percent.
The figure was dragged down by weaker investment in housing construction... after the government passed stronger measures to curb soaring home prices.
Facilities investment, on the other hand, is expected to record positive growth of 0-point-4 percent, up from last year's estimated negative growth.
The report pointed out that growth is still slow... due to shrinking investment in the semiconductor industry.
Analysts say it's partly because of lower demand for semiconductors and falling prices.
Private consumption isn't looking great this year either.
Separate data from the LG Economic Research Institute released last September call for a rise in private consumption of 2-point-6 percent this year... down from last year's estimate of 3 percent.
The institute says the sluggish job market has hurt households' purchasing power.
Last but not least, exports are forecast to slow down in the new year as well.
The Korea Development Institute forecast in November that exports will grow in 2019 by 3-point-7 percent,... which is slower than last year's estimate.
Researchers say the ongoing trade war between the U.S. and China might hurt global trade... and negatively affect Korea's export-dependent economy.
To get things moving, an economic expert emphasized the importance of deregulation by the government.
"The government should ease regulations, especially in industries related to the 4th industrial revolution, so that companies can easily enter new, promising fields.
Private companies should actively invest in research and development to compete with other countries like China."
Ko Roon-hee, Arirang News.
Businesses have been reluctant to invest, and consumers reluctant to spend.
That's right. South Korea is also caught in the middle of the trade war between the U.S. and China.
So economists have been steadily lowering the estimates for economic growth for 2019.
Our Ko Roon-hee has the latest numbers.
Korea's economy in 2019 will grow more slowly than last year... mainly due to weak domestic demand and slower growth in exports.
Domestic demand includes private consumption, public spending and business investment,... and among the three, the picture looks worst in terms of investment.
According to a report last month from Hyundai Research Institute, construction investment is expected to fall in the new year by 2-point-9 percent.
That's even worse than last year when investment shrank by an estimated 2-point-4 percent.
The figure was dragged down by weaker investment in housing construction... after the government passed stronger measures to curb soaring home prices.
Facilities investment, on the other hand, is expected to record positive growth of 0-point-4 percent, up from last year's estimated negative growth.
The report pointed out that growth is still slow... due to shrinking investment in the semiconductor industry.
Analysts say it's partly because of lower demand for semiconductors and falling prices.
Private consumption isn't looking great this year either.
Separate data from the LG Economic Research Institute released last September call for a rise in private consumption of 2-point-6 percent this year... down from last year's estimate of 3 percent.
The institute says the sluggish job market has hurt households' purchasing power.
Last but not least, exports are forecast to slow down in the new year as well.
The Korea Development Institute forecast in November that exports will grow in 2019 by 3-point-7 percent,... which is slower than last year's estimate.
Researchers say the ongoing trade war between the U.S. and China might hurt global trade... and negatively affect Korea's export-dependent economy.
To get things moving, an economic expert emphasized the importance of deregulation by the government.
"The government should ease regulations, especially in industries related to the 4th industrial revolution, so that companies can easily enter new, promising fields.
Private companies should actively invest in research and development to compete with other countries like China."
Ko Roon-hee, Arirang News.