|Title||Korean Economy Seen to Grow More Than 3% in 2017|
|Manager||Ralphy Song||Department in charge||Exhibition Managment Team|
[Korean Market Intelligence]
Korean Economy Seen to Grow More Than 3% in 2017
The economy is expected to achieve more than 3% growth for the first time in three years in 2017, although the growth was led by some sectors and unemployment has been rising.
In 2018, this recovery momentum will continue amid strong global economies and improving domestic consumption. However, there are uncertainties as to rising interest rates, protectionism and growing competition in global trade due to narrowing technology gap among manufacturers.
In addition, challenges arising from changing industries and demographics make it more complicated to find jobs, and some of the country’s major industries, such as shipbuilding and car-making, have been slowing down without services and new industries, which can replace the role of those industries, properly developing. The economy also needs to encourage SMEs, prepare for low birth and ageing population, and increase woman employment.
< 2018 Outlook for Korean Economy >
• Growth: Annual growth of 3.0% is expected with a nominal growth rate projected to be 4.8%. A slowdown in the nominal rate is due to the slowly growing GDP deflator amid low consumer price inflation and export prices.
• Employment: A total of 320,000 jobs, the same level as 2017, are expected to be added to the economy.
• Inflation: The annual consumer price inflation is projected to be 1.7% with steady oil prices and fresh food prices.
• Current account balance: The current account surplus is expected to decline to US $79 billion, as exports are projected to increase 4.0% and imports to rise 6.0%.