10 December 2010 06:02 [Source: ICIS news]
SINGAPORE (ICIS)--The South Korean economy is expected to post a 4.5% growth next year, with the momentum of expansion likely strengthening in the second half, the country’s central bank said on Friday.
The 2011 GDP growth forecast represented a slowing down from the estimated growth for the current year at 6.1%, which was largely due to a very low-base in 2009 when economic activities slumped, the Bank of Korea (BoK) said in a statement.
“These economic forecasts for 2011 are attended by a considerable degree of uncertainty,” the central bank said, citing heightened geopolitical risks with ?xml:namespace>
Based on forecasts, the South Korean economy would expand 3.8% in the first half, with a stronger growth of 5.0% seen in the second half.
This growth trend was based on expectations that fiscal stimulus measures would be withdrawn in the first half, and was predicated on the economic recovery in advanced western countries, including the
“In terms of expenditure sectors, domestic demand and exports are likely to act as twin sources of growth owing to the strengthening of private consumption and facilities investment,” it added.
Consumer prices would likely continue to increase next year, with average inflation projected at 3.5%, the BoK said.
Meanwhile, strong exports would keep the country’s current account (CA) surplus strong in 2011 at below 2% of GDP.
CA is a measure of an economy’s transactions in goods, services and transfers involving foreign exchange with the rest of the world.
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|