South Korea’s central bank lowers 2012 growth outlookDecember 9th, 2011 - 1:27 pm ICT by IANS
Seoul, Dec 9 (IANS) South Korea’s central bank lowered Friday the country’s economic growth outlook for 2012 to 3.7 percent from an earlier estimate of 4.6 percent, citing slower export growth hit by Europe’s debt crisis and global economic slowdown.
The Bank of Korea (BOK) also revised down the 2011 growth outlook to 3.8 percent from 4.3 percent estimated in July. The Asia’s No. 4 economy was forecast to grow 4.2 percent in 2013, reported Xinhua.
“The South Korean economy is forecast to show signs of mild slowdown from the second half of 2011 to the first half of 2012 due to the decelerating global economic growth following the sovereign debt problems in the euro area and to the increased volatility in the financial and foreign exchange markets,” the BOK said in a statement.
The BOK, however, expected the domestic economy to return to its long-term growth trend from the second half of next year as the conditions in the euro area was predicted to improve from that period.
The outlook for 2012 consumer price inflation was cut to 3.3 percent from a previous estimate of 3.4 percent due to slower growth and a blunt rise in international commodity prices. The projection for 2011 inflation was unchanged at 4 percent, or the upper ceiling of the BOK’s inflation target band 2-4 percent.
Export growth was expected to post 5 percent in 2012, down from 11.6 percent estimated for 2011, but private consumption was projected to expand 3.2 percent next year, up from an estimated 2.5 percent growth for this year.
Meanwhile, the BOK left the outlooks of jobless rate for 2011 and 2012 unchanged at 3.5 percent and 3.4 percent respectively.
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- ADB cuts growth projection of developing Asia - Sep 14, 2011
- South Korean automakers' exports to slow down in 2012 - Dec 08, 2011
- `Downside risks to South Korean economy remain high' - Dec 08, 2011
- South Korea's central bank leaves interest rates unchanged - Oct 13, 2011
- India set to grow at 8.2 percent: IMF - Jun 17, 2011
- South Korea's central bank cuts 2012 growth outlook - Jul 13, 2012
- Economic Survey 2011-12 highlights - Mar 15, 2012
- ADB says China's GDP to grow 9.6 percent in 2011 (Second Lead) - Apr 06, 2011
Tags: commodity prices, consumer price inflation, debt crisis, debt problems, domestic economy, foreign exchange markets, global economic growth, global economic slowdown, growth outlook, growth trend, inflation target, international commodity, jobless rate, outlooks, private consumption, s central, south korea, south korean economy, sovereign debt, xinhua