South Korea is likely to see weaker economic growth in 2011 and 2012, amid growing uncertainties in the global economy, a report said Friday. British bank HSBC cut its forecast of South Korea's gross domestic product (GDP) for 2011 to 3.4 percent from 4.1 percent, and to 4.1 percent from 4.7 percent for 2012, saying the country is exposed to the slowdown in global demand. It said the export-driven Korean economy could be dragged down by fading demand in the United States and Europe as they struggle with debt problems. "South Korea has delivered an impressive recovery since being battered by the global financial crisis in 2008," said Frederic Neumann, co-head of Asian Economics Research at HSBC. "In large part, this is due to the extraordinary competitiveness of Korea's export sector, setting the country up to benefit more than others from rebounding world trade. "However, this dependence on external demand is now likely to prove more of a liability than an asset as growth slumps in much of the world." HSBC added, however, that demand in China is expected to hold up better than elsewhere in the world, supporting South Korean exporters. The bank said South Korea overall appears in more robust shape than in 2008, when the global credit freeze hit the country especially hard. The banking sector is less reliant on wholesale funding and the central Bank of Korea commands adequate foreign exchange reserves to counter volatility in U.S. dollar funding markets, it said.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor